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Economics question Exercise 8.6. Suppose that the alternating-offer game of Section 8.7 is played with feasible set F = {(xux2)|x1 + x2 5 v12}, disagreement

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Economics question

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Exercise 8.6. Suppose that the alternating-offer game of Section 8.7 is played with feasible set F = {(xux2)|x1 + x2 5 v12}, disagreement payoffs (01,02), and termination probabilities (p.432), where v12 > v1 + '02. As a function of these parameters (vlg, 11., '02, pl, 132), what is the general formula for the offer that player 1 would always make and the offer that player 2 would always make in the subgame-perfect equilibrium

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