1. Two candidates (Player 1 and Player 2) are competing in a primary race. Each player has two options: "Continue" or "Drop out". The payoffs of the game are described as follows: 2 Continue Drop out Continue 1, 4 5 , 1 Drop out 0 , 4 2 , 1 Player 1 would like to modify the payoffs of this game by negotiating some transfers with Player 2 in the following way: (i) If Player 2 drops out while Player 1 continues, then Player 1 gives a transfer t to Player 2. (ii) However, if Player 2 continues while Player 1 also continues, then Player 2 gives a transfer s to Player 1. If players fail to reach an agreement on the transfers t and s, they just play the original game. Otherwise, if players agree on the transfers t and s, they would play the following modified game: 2 Continue Drop out Continue 1+ s , 4-s 5 -t , 1+t Drop out 0 , 4 2 , 1 As always, transfers can be positive or negative. (a) Describe the extensive form of this game. (b) Find the Negotiation Equilibrium as a function of players' bargaining weights