Question: Ali and Baba are bargaining to split a total that starts out at $10. Ali makes the first offer, stating how $10 will be divided
Ali and Baba are bargaining to split a total that starts out at $10. Ali makes the first offer, stating how $10 will be divided between them. If Baba accepts this offer, the game is over. If Baba rejects it, $2 is withdrawn from the total, and so it is now only $8. Then Baba gets the second turn to make a final offer of a division. What is the rollback equilibrium outcome of the game
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