1. Consider a game played between players 1 and 2. At the beginning of the game both players negotiate a contract involving a transfer t and an additional term ye (0,1). If they reach an agreement then they proceed to play a simultaneous game where each player has two strategies: A and B. Suppose that the extensive form of this game is the following (with the payoffs of player 1 shown first): 5-6+2y .t + 3- y A ty B. 5-tit-y 1,2 2y-t.t+1 A Default B B 5y-t+1.0 -1,0 (a) Describe the negotiation equilibrium of this game assuming that both players have equal bargaining power (that is, assuming that 11 = 72 = )) (note that y [0,1]). (b) Describe the negotiation equilibrium of this game assuming that 6 = and 112 = (note that ye [0,1])