Finitely Repeated Prisoners’ Dilemma Consider the prisoners’ dilemma game of Chap. 1: Suppose that this game is played twice. After the first play of the game the players learn the outcome of that...

Finitely Repeated Prisoners’ Dilemma

Consider the prisoners’ dilemma game of Chap. 1:

Suppose that this game is played twice. 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) Write down the extensive form of this game. How many strategies does each player have? How many subgames does this game have?

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