N6

10. Doc and Brewster are in a negotiation over royalties. The negotiations proceed as follows. Doc can set a price p. Having seen Doc's offer Brewster can either accept (A) or reject (R). If Brewster accepts Doc's offer the payoffs are p to Doc and 200 - p to Brewster. If Brewster rejects (R) the payoffs are 0 to Doc and 80 to Brewster. What is the highest price that Brewster will accept in the subgame perfect equilibrium of this game? p =