Question
Two pirates, Red Beard and Yellow Beard, have just seized one hundred gold coins, and now its time to share the loot. The bargaining rules
Two pirates, Red Beard and Yellow Beard, have just seized one hundred gold coins, and now it’s time to share the loot. The bargaining rules are: Red Beard gets to propose a division of the one hundred coins. If Yellow Beard accepts the proposal, then the coins are allocated and the game ends. If Yellow Beard does not accept, coins get thrown overboard, and each pirate gets a payoff of zero. How many coins will Red Beard get in the (subgame perfect) outcome of this bargaining game?
A.100 coins
B.2 coins
C.200 coins
D.75 coins
E.50 coins
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