Mathematics, 16.07.2019 01:20 serafimharmane4944

If you advertise and your rival advertises, you each will earn $5 million in profits. if neither of you advertises, you will each earn $10 million in profits. however, if one of you advertises and the other does not, the firm that advertises will earn $15 million and the non-advertising firm will earn $1 million. suppose this game is repeated for a finite number of times, but the players do not know the exact date at which the game will end. the players can earn collusive profits as a nash equilibrium to the repeated play of the game if the probability the game terminates in any period is:

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If you advertise and your rival advertises, you each will earn $5 million in profits. if neither of...