Consider the decision to be made by the 20th and final competitor, of whether to choose or . He knows that if he chooses , Player A receives a higher payoff from choosing cooperate than aggressive, and being the last period of the game, there are no longer any future competitors whom Player A needs to intimidate from the market. Knowing this, the 20th competitor enters the market, and Player A will cooperate (receiving a payoff of 2 instead of 0).