Characterize the entire set of perfect-equilibrium outcomes

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Question: (a) Consider the following modification of the stationary symmetric war of attrition developed in subsection

1063_4.5.png which corresponds to the assumption that if both animals stop fighting simultaneously then cach has probability q of winning the prize. Characterize the symmetric stationary equilibrium. Compute the limit as the time period shrinds and show it is independent of q.

(b) Characterize the entire set of perfect-equilibrium outcomes.

Reference no: EM131449739

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