Question: Consider the finite - horizon Nash bargaining problem discussed in section 1 2 . 9 of the textbook. Keep everything the same, except that the
Consider the finitehorizon Nash bargaining problem discussed in section of the textbook. Keep everything
the same, except that the number of periods is changed from to n We call two consecutive periods a
superperiod. For example, period and period are called superperiod Similarly, periods and are
called superperiod In general, superperiod i where i n contains two periods. The first period
is period i and the second period is period i Node A proposes a split in the first period of superperiods
and Node B proposes a split in the second period of superperiods. Denote the split proposed by node A in
superperiod i by ai bi i n Similarly, denote the split proposed by node B in superperiod
i by ai bi
a Derive ai bi and ai bi for i n
b Show that as n goes to infinity, the limits of the splits derived in part a are
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