1. In the model of strategic bargaining between two players (A and B) with a common fractional discount factor 6 , suppose that each player also immediately incurs a small xed bargaining cost cl. , i = A, B from rejecting a current offer from the other player. Construct and illustrate the players ' corresponding best-response functions, and use these to derive expressions for the subgame- perfect equilibrium for the two players, assuming as before that player A makes the first offer