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In the Nash bargaining problem with a finite horizon, the number of periods is changed from 2 to 2 n . Two consecutive periods are
In the Nash bargaining problem with a finite horizon, the number of periods is changed from to n Two consecutive periods are referred to as a superperiod. For instance, period and period are called superperiod periods and are called superperiod and so on In general, superperiod i where i ranges from to n contains two periods. The first period is period i and the second period is period i
Node A proposes a split in the first period of superperiods and Node B proposes a split in the second period of superperiods. The split proposed by node A in superperiod i is denoted by
where i ranges from to n Similarly, the split proposed by node B in superperiod i is denoted by a Derive ai bi and ai bi for i n
b Show that as n goes to infinity, the limits of the splits derived in part a are
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