Consider two agents repeatedly playing a symmetric pure coordination
game with payoffs given in Table 11.4.
(a) Construct a space of conventional strategies ˜_i for each player i = 1, 2 that
satisfies Condition (N) in Subsection 11.4.3 and is composed of exactly
three strategies.
(b) Assume that each player i ’s beliefs are uniform on ˜_ j , i, j = 1, 2, i _= j .
Is (CP) satisfied?
(c) Given discount rate δ = 1/2 and the uniform beliefs postulated in (b), determine
some strategy profile consistent with (EPM). Discuss your answer
in view of the conclusions established by Theorem 11.9.
