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Consider the following game between to players Anne and Bob. Anne moves first and decides whether to play a game or pass (meaning: not play

Consider the following game between to players Anne and Bob. Anne moves

first and decides whether to play a game or pass (meaning: not play a game). If she

passes, then she gets a payoff of ? = 3. Bob gets 0 in that case. If she decides to play

the game, then the following happens: Bob chooses first and makes Anne an offer ?.

The offer is a whole number between 0 and 4. Anne observes ? and decides whether to

"Accept" or "Reject." If Bob's claim is accepted, then Bob gets ? and Anne gets 4 ?. If

the claim is rejected then, each of them gets 0.

a) Write down one strategy for each player.

b) Is there a subgame perfect equilibrium in which Anne plays the game? Explain.

c) Is there a Nash equilibrium in which Anne plays the game? If yes, find it. If no,

explain why not.

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