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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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