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Deriveallthe pure-strategy Nash equilibria of the following strategic-form game involving two players, Amy and Emma. Each of them simultaneously makes a demand for a share
Deriveallthe pure-strategy Nash equilibria of the following strategic-form game involving two players, Amy and Emma. Each of them simultaneously makes a demand for a share of a chocolate bar. LetdAanddEdenote the demands of Amy and Emma, respectively,where0dA1and0dE1. IfdA+dE1,thenanagreementis reached, and Amy's payoff isdAand Emma's payoff isdE. However, ifdA+dE>1, then Amy and Emma fail to agree on how to divide the chocolate bar, and each of them gets a payoff of zero. Explain your answer.
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