Question: Repeat Problem 3, but change it as follows. Fred and Barney each have an additional option: to withdraw from the negotiations. If either one withdraws,

Repeat Problem 3, but change it as follows. Fred and Barney each have an additional option: to withdraw from the negotiations. If either one withdraws, he receives a payoff of $1.50. Everything else is the same as in Problem 3.

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No strategies are dominant strategies Fred picking 0 or 1 and Barney picking 3 or 4 are dominated strategies No strategies are weakly dominated strategies The Nash equilibria are for both players to p... View full answer

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