Consider the case in which you are trying to buy a house and you are bargaining with the current owner over the sale price. The house is of value $200, 000 to you and $100, 000 to the current owner. hence, if the price is between $100,000 and $200,000 then you would both better off with the sale. Assume that bargaining takes place with alternative offers and that each stage of bargaining (an offer and response) takes a full day to complete. If agreement is not reached after 10 days of bargaining, then the opportunity for the sale disappears. Suppose that you and the current owner discount the future according to the discount factor 5 per day. The real estate agent has allowed you to decide wether you will make the rst offer. (a) Suppose that & is small; in particular 8 0.93. Should you make the first offer or let or let the current owner make the first offer? Why