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  3. 2 consider the normal form game g ti 55 ...

Question: 2 consider the normal form game g ti 55 ...

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2. Consider the normal form game G TI (5,5) | (3,10) | (0,4) M (10,3) (4,4)2,2) B (4,0) (2,-2) (-10,-10) Let G(8) denote the game in which the game G is played by the same players at times 0, 1,2,3,... and payoff streams are evaluated using the common discount factor a. For which values of is it possible to sustain the vector (5, 5) as a subgame per- fect equilibrium payoff, by using Nash reversion (playing Nash eq. strategy infinitely upon a deviation) as the punishment strategy. 4/5, and design a simple penal code (as sustain the payoff vector (5,5)

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