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Consider the game in question 1 but now assume that there is a cost of delay from not agreeing (instead of discount factors). More specically,

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Consider the game in question 1 but now assume that there is a cost of delay from not agreeing (instead of discount factors). More specically, suppose that the payoff to player i when she accepts the split (y1,y2) in period two is yz- a; where O

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