Unformatted text preview: ( M,M ) then play L . In the ﬁrst period, given that player 2 plays M , player 1’s choices and corresponding total payoﬀs are as follows: • chooses M , then payoﬀ = 4 + 3 =7; • deviates from M to L then payoﬀ = 5 + 1 = 6; • deviates from M to R then payoﬀ = 0 + 1 = 1. Clearly, player’s best action is M. 1...
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 Spring '11
 Zhao
 Game Theory, Repeated game, Prof. Rui Zhao, ﬁrst period

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