Homework 3, Problems due October 25

Read Sections 6.1.1-6.1.2 and 6.3 in this book. Read Chapter 9 in this book.

1. Determine the smallest discount factor for which (TitForTat, TitForTat) is a Nash equilibrium in repeated prisoners dilemma with discounted payoff.
2. Use the folk theorem to determine a pair of strategies that form a Nash equilibrium in repeated prisoners dilemma and achieves an expected payoff of 1.9 for the first player and 2.1 for the second player.