... finitely repeated game with observa ble actions,if the stage game has a unique subgame perfect equilibrium, then the repeated game has aunique subgame perfect equilibrium, where the subgame perfect ... indifferent.18•1αδ(3,3)(2,5)This is another subgame:•2•1ad(0,4)αδ(3,3)(2,5)And the third subgame is the game itself. We call the first tw o subgames (excludingthe game itself) proper. Note that, ... perfect equilibrium of the stage game is player at each da y.If the stage game has more than one equilibrium, then in the repeated game we may havesome subgame perfect equilibria where, in...