There is no Nash equilibrium. Given the strategy adopted by one, the other may want to change their strategy. Both players want to keep their strategies secret. Consider the pay-off matrix 4 outcomes yield nothing 2 outcomes yield less than what is available 2 outcomes grant everything to one player 1 outcome splits the payout equally. Infinitely Repeated Games Game Features Games played repeatedly, forever.
Players receive payoffs after round.
Since payoffs accrue over time, future payoffs must be discounted to reflect the time value of money. Bertrand duopoly with the trigger strategy. Trigger Strategies in the Waste Industry Trash haulers agreed not to compete and charged higher prices. Cheaters could steal customers by secretly offering lower prices. Firms monitored rivals by having the trash trucks followed to see who was serving which customers.