EXERCISE 443.1 (Delayed modified grim trigger strategies) Choose a positive in- teger k and consider the strategy that chooses D in the first k periods of the game, regardless of the history, and then follows the modified grim trigger strategy, start- ing in state C. Find the range of values for the discount factor for which the strategy pair in which each player uses this strategy is a subgame perfect equilibrium.
EXERCISE 443.1 (Delayed modified grim trigger strategies) Choose a positive in- teger k and consider the strategy that chooses D in the first k periods of the game, regardless of the history, and then follows the modified grim trigger strategy, start- ing in state C. Find the range of values for the discount factor for which the strategy pair in which each player uses this strategy is a subgame perfect equilibrium.
Chapter18: Asymmetric Information
Section: Chapter Questions
Problem 18.10P
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