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Two people are to allocate 2 identical desirable objects between them. One of them, A, makes a proposal to B as to how to allocate them. Only three...

Two people are to allocate 2 identical desirable objects between them. One of them, A, makes a proposal to B as to how to allocate them. Only three proposals are allowed: both go to A, both go to B, or each
gets one object. B can either accept or refuse the proposal. If B refuses,neither receives either object; if she accepts, they get the proposed allocation. Represent this as an extensive form game. Represent it as a strategic form game.

*How many strategies does player B have?
(a) 2
(b) 4
(c) 8
(d) None of the above.

*Find all Nash equilibria. How many are there?
(a) 2
(b) 5
(c) 9
(d) None of the above.

*Find all Subgame Perfect equilibria. How many are there?
(a) 1
(b) 2
(c) 9
(d) None of the above.
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Economics-8227310.doc

Two people are to allocate 2 identical desirable objects between them. One of them, A,
makes a proposal to B as to how to allocate them. Only three proposals are allowed:
both go to A, both go to...

Sign up to view the full answer

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