Question: game thory 1. Consider a three-player bargaining, where the players are negotiating over a surplus of one unit of utility. The game begins with player

game thory

1. Consider a three-player bargaining, where the players are negotiating over a surplus of one unit of utility. The game begins with player 1 prOposing a three-way Split of the surplus. Then player 2 must decide whether to accept the pmposal or to substitute for player 1's prOposal his own alter- native proposal. Finally, player 3 must decide whether to accept or reject current preposal (it is player 1's if player 2 aCCpets or player 2's if player 2 offer a new one). If he accepts, then the players obtain the Specied shares of the surplus. If player 3 rejects, then the players each get 0. (a) Draw the extensive form game of this perfect-information game. (b) Determine the subgame perfect NE
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