Player 2
L R
T (-1, 4)( 1, 5)
Player 1
B (0, 2) (-1, 0)
Assume that the game have to be undertaken simultaneously,and it is repeated an infinite number of times. Let δ be
the discount factor. What are all the SPE (in pure strategies) if δ tends to 0? What are all the SPE (in pure strategies) if δ tends to 1?