A Twice Repeated 2 2 Bimatrix Game Consider the following bimatrix game: Suppose that the game is played twice, and that after the first play of the game the players learn the outcome of that play....

A Twice Repeated 22 Bimatrix Game

Consider the following bimatrix game:

Suppose that the game is played twice, and that after the first play of the game the players learn the outcome of that play. The final payoff for each player is the sum of the payoffs of the two stages.

(a) Determine the subgame perfect equilibrium or equilibria of this game. What if the game is repeated more than twice but still finitely many times?

(b) Exhibit a Nash equilibrium (of the twice repeated game) where .B; L/ is played in the first round.