Essay
Suppose you and a complete stranger must split $100 in even dollar increments.You propose a split, and the stranger with whom you are splitting the $100 either accepts or rejects.If she rejects, you both receive nothing.
a.What is the Nash equilibrium for this game?
b.The Nash equilibrium solution is not frequently observed in practice.Explain why.
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a.You should propose $99 for yourself, $...View Answer
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