3. Consider a variant of the Rubinstein bargaining game with two players where player 1's discount factors is d1 and player 2's discount factor is 82: a) In cach round player 1 makes a proposal and player 2 says “yes" (game over) or “no" (continues to the next round). Find SPE-play and the SPE. b) In round 1 player 1 makes a proposal and players 2 says "yes" (game over) or says "no" (continues to the next round). From round 2 onwards, in each round, player 2 makes a proposal and player 1 is the responder ("yes" = game ends, "no" = continues to the next round). Determine SPE-play and the SPE. %3D %3D

3. Consider a variant of the Rubinstein bargaining game with two players where player 1's discount factors is d1 and player 2's discount factor is 82: a) In cach round player 1 makes a proposal and player 2 says “yes" (game over) or “no" (continues to the next round). Find SPE-play and the SPE. b) In round 1 player 1 makes a proposal and players 2 says "yes" (game over) or says "no" (continues to the next round). From round 2 onwards, in each round, player 2 makes a proposal and player 1 is the responder ("yes" = game ends, "no" = continues to the next round). Determine SPE-play and the SPE. %3D %3D

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.9P

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