Question: midterm question Q4.(20 pt) Consider the following bargaining situation. Two individuals are considering undertaking a business venture that will earn them 100 dollars in profit,

midterm question

midterm question Q4.(20 pt) Consider the following bargaining situation. Two individuals are

Q4.(20 pt) Consider the following bargaining situation. Two individuals are considering undertaking a business venture that will earn them 100 dollars in profit, but they must agree how to split that 100 dollars. Bargaining works as follows: The two individuals simultaneously make a demand, which is a real number in [0, 100]. If their demands sum to more than 100, then they fail to agree and each gets nothing. Otherwise , they do the project, each gets his demand, and the rest goes to charity, which does not bring any extra utility to players. (a) What are each player's strictly dominated strategies? (if any) (b) What are each player's weakly dominated strategies? (if any) (c) What are the pure strategy Nash equilibria of this game? (if any)

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