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Business, 07.03.2020 04:21 mexprencss

Consider a variant of the ultimatum game, with indivisible units. Two people use the following procedure to allocate two desirable identical indivisible objects. One person proposes an al-location (both objects go to person 1, both go to person 2, one goes to each person), which the other person then either accepts or rejects. In the event of rejection, neither person receives either object. Each person cares only about the number of objects she obtains. Construct an extensive game that models this situation and find its subgame perfect equilibria. Does the game have any Nash equilibrium that is not a subgame perfect equilibrium

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Consider a variant of the ultimatum game, with indivisible units. Two people use the following proce...

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