-Consider the Oil-Drilling Game Depicted in Figure 5

Multiple Choice

-Consider the oil-drilling game depicted in Figure 5.4 in which payoffs are in millions of dollars. Suppose that this game is played repeatedly and the discount rate is 25 percent. What is the probability that the game will end in the next stage will a player be indifferent between cooperating and defecting?

A) Around 10 percent.
B) Around 15 percent.
C) Around 17 percent.
D) Around 21 percent.
E) None of the above.