00:01
To analyze the repeated game and find the minimum discount rate for the green trigger strategy of the sequentially perfect equilibrium sp and e we need to consider the possibility.
00:15
So let's start with part a.
00:17
So part a so we know alpha is equal to 9.
00:25
So part a we find this minimum discount rate minimum.
00:31
So this is a discount factor.
00:38
So for cc to be sp and with green strategy.
00:43
So what's the green strategy? grim and tagis.
00:51
So what it is? so it's say 10 plus discount factor vc greater than or less than 5 plus discount factor vt.
01:05
So vc is the continuous pay off for player 1 if both player cooperate.
01:35
And vd is the continuous pay off players is 2 derivatives and both player not cooperate.
02:01
Both player defect.
02:07
So we calculate the continuous values.
02:10
So first we for cc so vc is equal to 10 plus discount factor vc.
02:23
So v for dd so vc is equal and for the for dd and the for dd.
02:40
So for dd the vd is equal to 14 plus this vd.
02:57
So we say vc is equal to 10 plus this one vc and vd is equal to 14 plus vd discount factor vd.
03:12
So we also know that the alpha is equal to 9.
03:21
So now minimum value we find it 10 plus this one vc is 14 plus so equal together vd.
03:35
This is discount factor...