Quick question about game theory. Suppose you have a two round game with two players: A and B. There are two strategies, cooperate or cheat.
If both players cooperate, they each receive 10. If one cooperates but the other cheats, then the cooperative player gets 5 while the cheater gets 15. If they both cheat, then both get 7.
If player A commits to cooperating in the first round and adopts a tit-for-tat strategy on player B (if B chooses to cooperate in the first round, A will follow and cooperate in the second round and vice versa for cheating)
What is the likely outcome and payoff of the game?