Continue to consider the market described in the previous problem, however make the following change. Suppose the same industry exists for an in nite number of periods, the discount factor for pro ts is still = 0:9. Firms are considering the following strategy: • As long as no rm has cheated, play according to the agreement to optimize joint pro ts and split the proceeds. • If either rm has cheated in any earlier period, play the static Nash equilibrium in every period from now on. If both rms follow the proposed strategy, what is the present discounted value of each rm's pro ts?