On Discounting In a repeated game, interpret the discount factor as the probability that the game will continue, i.e., that the stage game will be played again. Show that, with this interpretation,...

On Discounting In a repeated game, interpret the discount factor

as the probability that the game will continue, i.e., that the stage game will be played again. Show that, with this interpretation, the repeated game will end with probability 1. (Cf. Problem 6.17(e).)