Highlights
Question 1
Players 1 and 2 are bargaining over how to split $10. Each player I names an amount, si between 0 and 10 for herself. These numbers do not have to be in whole dollar units. The choices are made simultaneously. Each player's pay is equal to her own money pay. We will consider this game under two dievent rules. In both cases, if s1 + s2 = 10 then the players get the amounts that they named (and the remainder, if any, is destroyed).
(a) [2] In the first case, ifs1 + s2 > 10 then both players get zero and the money is destroyed. What is the pure strategy Nash equilibria of this game?
(b) [2] In the second case, if s1 + s2 > 10 and the amounts named are dierent, then the person who names the smaller amount gets that amount and the other person gets the remaining money. If s1 + s2 > 10 and s1 = s2, then both players get $5. What is the pure strategy Nash equilibria of this game?
(c) [1] Is there an rst mover advantage in this game?
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