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The punishment profile a1.hat is the profile in which player 1 already plays a best-reply (in a1 he might play a non-best reply). From the specified action profiles in all states, we can compute the relevant after-cap payoffs U(x), v1(x) and v2(x) assuming that state transitions would continue.", "topics": [ "rel_after_cap_actions" ] }, { "page": "rel_after_cap_payoffs", "title": "Specify the SPE payoff set(s) of the truncated game(s) after a cap in period T. 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