Question: 4. For a three-period bargaining game starting with Player l's offer, assume 2 has an outside option of getting 0.4 in the last period. The

4. For a three-period bargaining game starting with Player l's offer, assume 2 has an outside option of getting 0.4 in the last period. The discount factor is 8=0.8 Player - (a) What will Pl offer to P2 if they are in the last period? Explain why this is the only NE (b) How will they split the pie in the SPNE? Show your work

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