Question
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
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 =
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Clifford W. Smith Jr., Jerold Zimmerman
6th edition
73523143, 73523149, 978-0073523149
