U8. Creating a spreadsheet for this exercise is most helpful and strongly recommended. Consider the
following example in Excel.
Enter Period in cell A1, xt in cell A2, FX in cell A3, and FY in cell A4. In cell B1 enter 0, and in
cell C1 enter the formula =B1+1. The symmetric game used in this exercise has the following payoff
structure:
In cells A6, A7, A8, and A9, enter a =, b =, c =, and d =, respectively. Given the payoffs of the
game used in this exercise (and Exercise S8 as well), enter 2 in cell B6, 5 in cell B7, 3 in cell B8, and 1 in
cell B9.
Select cells B3 and B4, copy them, select cells C3 and C4 and paste. Now select the range C1:C4,
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