Hmm, a very interesting case! Intuitively, I would think the function would be undefined for P. Is it really a "game" at all, when neither player has a decision that has any affect on the game?
I could see "undefined" coming naturally from a division by 0 here, where the denominator has something to do with the difference in the payouts received in some way. Indeed, you probably need some sort of division like that, to make the answer invariant under affine transformation.
Yeah, you can replace "typically" with "often" in both papers, and there's no problem. And presumably his paper didn't actually do the sort of broad analysis you'd need to argue that something held in the majority of cases. So the issue is that the student wasn't being logically rigorous and precise, and the teacher didn't mark down or comment on that. But that really isn't the point of the course.
The control group goes up, and then back down. The payments were made in waves, and it doesn't say the exact dates. But it's possible that they were on average made a little bit before a stimulus payment.