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Suppose instead that the payoffs of advertising game between two companies are (20,20), (28,5), (5,28), and (12,12) when the strategy combinations are (C, C), (N, C), (C, N) and (N, N). Then the minimum patience (in terms of the discount factor) needed for the grim trigger strategy to prevent any deviation from (c, c) is ___________ (Please show calculation

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91234546

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