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A man has two sons Robert and Collin and when he dies the value of his estate is $100'000. In his will it states that

A man has two sons Robert and Collin and when he dies the value of his estate is $100'000. In his will it states that the two sons must each specify a sum of money sR and sC (in multiple of thousands) which they are willing to accept. If sR +sC 100000 then they both get what they asked for and the remainder is sent to an animal shelter. If sR + sC > 100000 then neither son receives any money and all the money goes to the animal shelter.

  1. Interpret this situation as a game where each son only cares about maximizing his profit and find all the Nash equilibria for this game.
  2. Find the equilibrium if Robert makes an offer to Collin and Collin only can accept or reject.

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