Posted by **Tasa** on Saturday, November 27, 2010 at 2:22pm.

S and J are trying to split 100 dollars. In bargaining round 1, S makes an offer at cost 0, proposing to keep S1 for himself and J either accepts (ending the game) or rejects. In round 2, J makes an offer at cost 10 of S2 for S and S either accepts or rejects. In round 3, S makes an offer of S3 at cost c, and J either accepts or rejects. If no offer is ever accepted, the 100 dollars goes to a third player, D.

a) if c=0, what is the equilibrium outcome? what if c=80? c=10?

b) what happens if c=0, but Jones is very emotional and would spit S's face and throw the 100 dollars to D if S proposes S=100? Assume here that S knows J's personality perfectly.

## Answer this Question

## Related Questions

- Economics - S and J are trying to split 100 dollars. In bargaining round 1, S ...
- math - S and J are trying to split 100 dollars. In bargaining round 1, S makes ...
- Paralegal Today - Assume that John submits ann offer to Lisa to purchase Lisa's ...
- Economics - A firm and a worker interact as follows. First, the firm can make 2 ...
- Labor Relations - 1. The Local Roofers' Union makes an agreement with management...
- Math - 1.The cost of a soda at Paul's Pizza is $1.69. Refills are $0.45 each. ...
- Game Theory - I have a question on a fixed cost of bargaining problem. Can ...
- Math - I have $100.00 dollars to spend to buy 100 animals. Cows cost $50.00 each...
- Math, rates - Which rates are equivalent? 6 U.S. dollars = 18 U.S. dollars 8 ...
- Administering the Labor Agreement - 17. O.S.R. Manufacturing Inc. is a ...