It turns out that what happen in a one-shot or one-period game gives us a very good clue as to what is likely to happen in a repeated game when the number of repetitions is finite. After all, a one-period game is just one class of finitely repeated games. So, in this spirit, let us make a simple experiment. Let us consider the simple extension of a game from one period to two as illustrated by Example 1 and determine what the equilibrium will be in this limited but nonetheless repeated setting. Is the equilibrium changed or dose the one-shot Nash equilibrium in which both firms choose not to co-operate still apply?