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Question 4 (25 points): Consider the following negotiation between two firms to form a joint venture. Firm 1 proposes an ownership share x [0, 1]

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Question 4 (25 points): Consider the following negotiation between two firms to form a joint venture. Firm 1 proposes an ownership share x [0, 1] for Firm 2. That is, x can be any number between 0 and 1 including 0 and 1 Firm 2 specifies the minimum ownership share y 0, 1] that she can accept. That is, y can be any number between 0 and 1 including 0 and 1. * Parties reach an aggrement if X =Y and x

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