Question: a) Consider a bilateral negotiating game in which a players salary is the weighted average between the players MRP and their reservation wage: W =

a) Consider a bilateral negotiating game in which a players salary is the weighted average between the players MRP and their reservation wage: W = aW_r + (1-a)MRP. Assume a player under reserve, with a reservation wage of $50,000 per year, and an MRP of $650,000 negotiates a salary of $380,000. What is this players

i) Pigouvian exploitation score?

ii) Negotiating index ()?

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