Game Theory Class

QUESTION 5 A social scientist (let's call him Bob) walks up to you on a sidewalk and pulls out a wad of 100 one dollar bills. He stops a second pedestrian and proposes the following game. You are to propose a division of the wad of bills (between you and the second pedestrian) and then the second pedestrian either accepts the division or does not accept. If she accepts, you split the money according to your proposal. If she does not accept, Bob keeps the money. a) What does the game tree for this game look like? b) Find a backward induction solution to the game. c) How well does this solution describe outcomes of ultimatum game experiments? Oba ATENTICA