According to game theory, what should we expect in a situationwhere two individuals are interacting over a period of two weeksand both individuals know that they will never interact again oncethe two weeks are up? Assume the payoff matrix describing theseinteractions takes on the general form of a prisoner's dilemmapayoff matrix.
| | The individuals cooperate at first but as time goes on they willdefect with increasing regularity |
| | The individuals will defect for the entire time |
| | Whether these individuals will cooperate depends whether theystart out with cooperation or defection. If they begin withcooperation, then they will cooperate for the entire two weeks. Ifthey begin with defection, then they will defect for the entire twoweeks. |
| | The individuals will cooperate for the entire two weeks |
