Consider a Bargaining Game, which operates as follows. There are t.docx - Consider a Bargaining Game which operates as follows There are two players

# Consider a Bargaining Game, which operates as follows. There are t.docx

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Consider a Bargaining Game, which operates as follows. There are two players, Edwin and Xinzhu. There are 3 one- dollar bills on the table. The game proceeds in two stages: First, Edwin makes an offer to Xinzhu. The possible offers are (e, 3 e), where the possible values of e are 0, 1, 2, or 3. The meaning of an offer is that Edwin is proposing that he should get e dollars and Xinzhu should get 3 e dollars. Second, Xinzhu responds to the offer by saying either Yes or No . If Xinzhu says Yes , then Edwin s offer is implemented and the game ends. If Xinzhu says No , then the game ends, the money disappears, and both players get nothing. Assume that each player s utility is equal to the number of dollars he or she has at the end of the game. Consider a Bargaining Game, which operates as follows. There are two players, Edwin and Xinzhu. There are 3 one- dollar bills on the table. The game proceeds in two stages: First, Edwin makes an offer to Xinzhu. The possible offers

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• Spring '08
• OBIAKU

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