Andrew Wants to Purchase Adam's Car

Multiple Choice

Andrew wants to purchase Adam's car. Andrew is prepared to pay a maximum of $2,000. Adam is not willing to accept anything lower than $1,000. Suppose that any failure to reach an agreement reduces Andrew's and Adam's gain from reaching an agreement by 10 percent. If there is no limit to the number of negotiating rounds, what percentage of the bargaining surplus should Andrew receive?

A) Around 49 percent.
B) Around 47 percent.
C) Around 43 percent.
D) Around 38 percent.
E) None of the above.