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See image for the question. Answers to question (1) - (5) please. Thanks. Ann and Bob are playing an innite horizon alternating offers bargaining game

See image for the question. Answers to question (1) - (5) please. Thanks.

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Ann and Bob are playing an innite horizon alternating offers bargaining game over a pie of size 1. Let 3,; denote player i's share of the pie. Shares must be non-negative (s,- 3 ) and must add to one (3,, + s; = 1). Ann and Bob are both altruistic. That is, Ann, for example, gets utility both from her own consumption and Bob's. If there is an agreement in period t assigning shares an and at then Ann gets 11,; = 5\"1(sa + ash) and Bob gets 1:3 = 6'_1(sg. + Elsa). We assume that {i <: o l and hence bob for example cares about ann but more himself. in odd periods t="1,3," ... makes an offer i accepts or rejects. even siei="y;" sh="1" y if agent then all agents are assigned their shares the game ends. otherwise we move to next period. no is ever accepted players get a payoff of zero. look stationary sgpne which following hold: each period there it such that only ii :r :i: periods. find relationship between :7: must hold sgpne. say s what utilities accepting rejecting as expressions those use this nd simplied expression :4: function a: p :r. explain words less why you found .17: should reject :- ir he accept held less. relationships parts solve values these equilibrium depend on order write ti :5 verify n="13" exact same lecture when were not altruistic>

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