Assymmetric Patience 1: Consider a three-period sequential (alternating offer) bargaining model in which two players have to split a pie worth 1 (starting with player 1 making the offer). Now the players have different discount factors, delta 1 and delta 2.

(a) Compute the outcome of the unique subgame-perfect equilibrium.

(b) Show that when delta 1 = delta 2, player 1 has an advantage.

(c) What conditions on delta 1 and delta 2 give player 2 an advantage? Why?