Refer to the Ultimatum Game in Figure. Recall that the payoffs are monetary payoffs. a. Suppose that

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Refer to the Ultimatum Game in Figure. Recall that the payoffs are monetary payoffs.

Refer to the Ultimatum Game in Figure. Recall that the

a. Suppose that players only care about monetary payoffs, with $1 = 1 util. find the sub game- perfect equilibrium.
b. Suppose that players are imperfectly altruistic. They receive 1 utile for each dollar they earn but ½util for each dollar the other player earns. Write down the extensive form reflecting the new payoffs. Find the sub game-perfect equilibrium.
c. Suppose that players are perfectly altruistic, receiving 1 utile for each dollar in the sum of their earnings. Write down the extensive form reflecting the new payoffs. Find the sub game- perfect equilibrium.
d. Suppose that players are perfectly selfless, getting 1 utile for each dollar the other player earns but no utility for their own earnings. Write down the extensive form reflecting the new payoffs. Find the sub game-perfect equilibrium. Does player 1 end up choosing the outcome that player 2prefers.

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Intermediate Microeconomics and Its Application

ISBN: 978-0324599107

11th edition

Authors: walter nicholson, christopher snyder

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