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Is that right?
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So this is going to be the value of 2 forever starting tomorrow
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and again for ever means until the game ends.
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The value of the threat is what? Be a bit careful now.
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It's the value of, so what's going to happen?
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If I cheat then tomorrow we're both going to cheat,
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so tomorrow, what am I going to get tomorrow? 0.
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So it's the value of 0 tomorrow: we're both going to cheat,
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we're both going to play D.
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And then the next period what's going to happen?
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We're going to play C again,
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and from there on we're going to go on playing C.