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Let (P1, P2) be the division chosen by player 1 in a subgame perfect equilibrium of the I-cut-youchoose game, where P1 and P2 together constitute
Let (P1, P2) be the division chosen by player 1 in a subgame perfect equilibrium of the I-cut-youchoose game, where P1 and P2 together constitute the whole cake C, and P2 is the piece chosen by player 2. Show that player 2 is indifferent between P1 and P2, and player 1 likes P1 at least as much as P2. Can you think of an example in which player 1 prefers P1 to P2
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International Economics
Authors: Robert C. Feenstra, Alan M. Taylor
3rd edition
978-1429278515, 142927851X, 978-1319029517, 1319029515, 978-1429278447
