Examine the following game. Two people are bargaining over two units of some good. Person 1 moves first

and offers an amount x {0, 1, 2} to person 2. Then person 2 has to decide either to accept (A) or to reject

(R) the offer. If person 2 accepts the offer x, then the game ends: person 1 receives the payoff (2 x) and

person two receives the payoff x. If person 2 rejects the offer, then the game ends as well and each person

receives the payoff 0.

(a) Draw the game tree that depicts the extensive form game. (5)

(b) Use backward induction to derive a subgame perfect nash equilibrium (SPNE) strategy profile of this

game. (5)