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1) There are two agents, 1 and 2. Agent 1 has to decide how to split 100 dollars between the two. Suppose that agent 1 has an altruistic derived utility function v1=u1+?u2, where u1 and u2 are the amounts of money that 1 and 2 receive, and 0

Consider this situation, but now suppose that agent 1 has guilt-envy preferences given by the derived utility function v1=u1?(2/3) max{u2?u1,0}?(2/3) max{u1?u2,0}. How much money should agent 1 give to agent 2 ?

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