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please, explain the correct answers Player 1's Payoff Player 2's Payoff Suppose that Player 1 and Player 2 are bargaining over which state of the
please, explain the correct answers
Player 1's Payoff Player 2's Payoff Suppose that Player 1 and Player 2 are bargaining over which state of the world, AG, to select. The payoffs to each player in each state of the world are given in the table above. Player 1's most preferred state is \\/ . Player 2's most preferred state is -. The Pareto Efcient state is X . Correct Answer: B Suppose that the default state of the world is A, and both players must agree to switch to a different state of the world. Player 1 could make Player 2 indifferent between sticking with the default state and switching to the Pareto Optimal state by offering to pay Player 2 >Step by Step Solution
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