-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 40 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 7 percent.
B) Around 10 percent.
C) Around 12 percent.
D) Around 15 percent.
E) None of the above.