Consider a game in which there is $4 to be divided, and the first mover is only permitted to make one of three proposals: (a) $3 for the first mover and $1 for the second mover, (b) $2 for each, or (c) $1 for the first movier and $3 for the second mover. The second mover is shown the proposal and can either accept, in which case it is implemented, or reject and cause each to earn $0. Show this game in extensive (tree) form. Be sure to show the payoffs for each person, with the first mover listed on the left, for each of the six terminal nodes.
Consider a game in which there is $4 to be divided, and the first mover is only permitted to make one of three proposals: (a) $3 for the first mover and $1 for the second mover, (b) $2 for each, or (c) $1 for the first movier and $3 for the second mover. The second mover is shown the proposal and can either accept, in which case it is implemented, or reject and cause each to earn $0. Show this game in extensive (tree) form. Be sure to show the payoffs for each person, with the first mover listed on the left, for each of the six terminal nodes.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter15: Strategic Games
Section: Chapter Questions
Problem 2MC
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![Consider a game in which there is $4 to be divided, and the first mover is only permitted to make one of three proposals:
(a) $3 for the first mover and $1 for the second mover, (b) $2 for each, or (c) $1 for the first movier and $3 for the second
mover. The second mover is shown the proposal and can either accept, in which case it is implemented, or reject and
cause each to earn $0. Show this game in extensive (tree) form. Be sure to show the payoffs for each person, with the
first mover listed on the left, for each of the six terminal nodes.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8cfddfdc-4c03-4af7-ab97-b32464d77535%2F4f10cfc8-b326-41b3-a8c0-0aa5be1d8c63%2F1prso3f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider a game in which there is $4 to be divided, and the first mover is only permitted to make one of three proposals:
(a) $3 for the first mover and $1 for the second mover, (b) $2 for each, or (c) $1 for the first movier and $3 for the second
mover. The second mover is shown the proposal and can either accept, in which case it is implemented, or reject and
cause each to earn $0. Show this game in extensive (tree) form. Be sure to show the payoffs for each person, with the
first mover listed on the left, for each of the six terminal nodes.
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