Consider the situation the economics professor faces in Problem 6, but now let's suppose that Dave makes

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Consider the situation the economics professor faces in Problem 6, but now let's suppose that Dave makes you the following offer: "Let's really soak this guy. I'll pass on turns 2 and 4 if you'll go halves on the 500 bucks with me." Should this offer fundamentally alter the outcome of the game? (Hint: Think about this problem using backward induction!)
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Microeconomics

ISBN: 9781464146978

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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