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Suppose a parent makes the following offer to her two children, who live in different cities. She tells each to ask for a certain whole
Suppose a parent makes the following offer to her two children, who live in different cities. She tells each to ask for a certain whole number of dollars as a gift, and if the total of the two amounts does not exceed $101, each will have her request granted. Otherwise, each gets nothing
Find all the pure strategy Nash equilibria of this game.
What do you think the twins will most likely do, assuming they cannot communicate? Why?
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