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There are 2 players who have to decide how to split one dollar. The bargaining process works as follows. Players simultaneously announce the share they

There are 2 players who have to decide how to split one dollar. The bargaining process works as follows. Players simultaneously announce the share they would like to receives_1

s1

ands_2

s2

, with0s_1

0s1

,s_21

s2

1. Ifs_1+s_21

s1

+s2

1, then the players receive the shares they named and ifs_1+s_2>1

s1

+s2

>1, then both players fail to achieve an agreement and receive zero.

Which of the following strategy profiles is a pure strategy Nash equilibrium?

a) (0.3, 0.7);

b) (0.5, 0.5);

c) (1.0, 1.0);

D) all of the above

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