4. Consider a two-stage alternating offer game with a pie of size $3 in the first...

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4. Consider a two-stage alternating offer game with a pie of size $3 in the first stage which shrinks to $2 in the second stage. Find the equilibrium first stage offer and explain whether it will be accepted under the assumption that people are perfectly selfish and rational. 4. Consider a two-stage alternating offer game with a pie of size $3 in the first stage which shrinks to $2 in the second stage. Find the equilibrium first stage offer and explain whether it will be accepted under the assumption that people are perfectly selfish and rational.

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In a twostage alternating offer game players take turns making offers to divide a pie The game you d... View the full answer