Suppose two players are going to be playing the following *prisoner's dilemma* an infinite number of times. *C* stands for *Confess* and *NC* for *Not Confess*. Their discount factor is $\delta=0.9$.

C | NC | |
---|---|---|

C | $\begin{align}{-2, -2}\end{align}$ | $\begin{align}{0, -3}\end{align}$ |

NC | $\begin{align}{-3, 0}\end{align}$ | $\begin{align}{-1, -1}\end{align}$ |

If they play the Nash equilibrium of the stage game, what is the present value for each of them?

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