(Table: Detroit Art School and Motor City Art School I) The payoffs represent profits measured in thousands of dollars. In this infinitely repeated game, the two schools agree to cooperate and not offer financial aid. Each school follows a grim trigger strategy. At what value of d is the Motor City Art School indifferent between upholding and cheating on the agreement?
A) 0.5
B) 0.7
C) 0.75
D) 0.9

Question

(Table: Detroit Art School and Motor City Art School I) The payoffs represent profits measured in thousands of dollars.  In this infinitely repeated game, the two schools agree to cooperate and not offer financial aid. Each school follows a grim trigger strategy. At what value of d is the Motor City Art School indifferent between upholding and cheating on the agreement?
A) 0.5 
B) 0.7 
C) 0.75 
D) 0.9

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The Answer of (Table: Detroit Art School and Motor City Art School I) The payoffs represent profits measured in thousands of dollars.  In this infinitely repeated game, the two schools agree to cooperate and not offer financial aid. Each school follows a grim trigger strategy. At what value of d is the Motor City Art School indifferent between upholding and cheating on the agreement?
A) 0.5 
B) 0.7 
C) 0.75 
D) 0.9