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Question: consider the stage game below and suppose it is repeated...

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Consider the stage game below, and suppose it is repeated infinitely many times.

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To sustain a SPNE in which players play (C,E) in every period by means of a trigger strategy, the discount rate must be larger than or equal to

a.

2/3.

b.

(C,E) cannot be part of a SPNE.

c.

1/7.

d.

1/3.

e.

3/7.

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