need full working as it is 20 marks

Q5 Suppose that the minimum price a seller will sell her boat for is $S, and that the maximum price the buyer will pay for the boat is $B, with B > S >0. Suppose that both players have the exact same discount factor, 8 = 0.7. Suppose that there are two rounds of bargaining, and that the buyer makes a proposal in the first round, and the seller makes a proposal in the second round. a) How much the buyer must offer the seller to get the boat? Suppose now that the bargaining can go on forever. b) How much the buyer must offer the seller to get the boat? Assume from now on that the seller is the first proposer (the bargaining can go on forever). c) What is the final price at which the boat will be sold for? How is the surplus split? The seller has now a discount factor equal to 0.8 and the buyer has a discount factor equal to 0.7 (the bargaining can go on forever). d) What is the final price at which the boat will be sold for? How is the surplus split? Comment