Question 4: [15 Points] Consider the following alternating offer bargaining game, where discounting fac- tors of 61 and 62 (both strictly between 0 and 1) for P1 and P2 respectively apply in period 2. P1 and P2 must split $4 between themselves. P1 rst makes an offer to P2 in the rst period, and P2 can either accept or reject the offer. If P2 accepts, he gets the amount offered by P1 and P1 gets what is left of the $4. If P2 rejects the offer, P2 has then the opportunity to make a counter-eer to P1 in period 2. P1 can then either accept or reject the offer. If he accepts, he gets the money offered by P2 and P2 gets what is left. If P1 rejects, then both players get $1 each, the $1 being; expressed in terms of period 1's dollar value (i.e. they each get the discounted value of a dollar). The game then ends