-Consider the One-Time Nash Bargaining Game Depicted in Figure 12

Multiple Choice

-Consider the one-time Nash bargaining game depicted in Figure 12.2 in which Gog andMagog are bargaining over the distribution of $100. Bids must be in increments of $50. In this game, the sum of the players' bids cannot exceed $100. If the sum of the bids are less than $100, each bidder receives his bid, and the rest is forfeited to the Exchequer. If the sum of the bids exceeds $100, the bidders receive nothing, and $100 is forfeited to the Exchequer. The most likely explanation for the outcome of this bargaining game is the:

A) Savage theorem.
B) Bertrand paradox.
C) Cournot model.
D) Minimax theorem.
E) Stackelberg theorem.