Question: Two players play the following prisoner's dilemma game repeatedly. Suppose that L=2, D=5, C=8, and H=11. The one period interest rate is...

Question:

Two players play the following prisoner's dilemma game repeatedly. Suppose that L=2, D=5, C=8, and H=11. The one period interest rate is r=6%. At the beginning of each period, the two play the game with probability p.

(a) Describe the tit-for-tat for a player in this game.

(b) Suppose that p=0.6, If Row plays the tit-for-tat strategy, will they always cooperate in the Nash equilibrium?

(c) Suppose that p=0.8, If Row plays the tit-for-tat strategy, will they always cooperate in the Nash equilibrium?