Unformatted text preview: der the following simultaneous-move 2x2 game.
a)  Define prisoner’s dilemma. What conditions do a,b,x,y have to satisfy for this game to
be a prisoner’s dilemma?
For parts b and c, assume that the above game is indeed a prisoner’s dilemma (so that the
conditions from part a hold) and is repeated infinitely many times.
b)  State player 1’s grim trigger strategy.
c)  Suppose both players have discount factor 0.8. Find and explain the conditions on
a,b,x,y (in addition to those from part a) so that both players playing their grim trigger
strategy is a subgame-perfect equilibrium....
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- Fall '13
- Game Theory, Grim trigger, answer booklet