Question
a) Abigail (A) and Balan (B) want to share a pizza of size 1. Suppose both agents have the same utility function u(x) = x
a) Abigail (A) and Balan (B) want to share a pizza of size 1. Suppose both agents have the same utility function u(x) = x for pizza, Abigail discounts with A = 1/2 and Balan discounts with B = 1/2. Abigail moves first. Calculate the Rubinstein solution of the bargaining problem.
b) Why does Abigail get a larger share of the pizza?.
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Crafting and Executing Strategy The Quest for Competitive Advantage
Authors: Arthur Thompson, Margaret Peteraf, John Gamble, A. J. Strickland III
19th edition
78029503, 978-0078029509
