Question: Question : Consider the following bargaining problem: 2 0 lakh rupees needs to be split between X and Y . Y gets to make an

Question : Consider the following bargaining problem: 20 lakh rupees needs to be split between X and Y . Y gets to make an initial offer. X then gets to respond by either accepting or rejecting Y's initial offer. If X accepts, the game ends and the initial offer would be their pay-off. If X rejects, then the game moves to the second period where X makes an offer. In the second period, Y has two choices- either accept or reject X's offer. If the offer is accepted, then X's offer would be the pay-off. Otherwise, both are getting 0. Y's discount factor is 0.8 and X's discount factor is 0.9.
(a) Represent this game in extensive form (draw the game tree only).(2 points)
(b) Find subgame perfect equilibrium (SPE) of this bargaining game. (3 points)
Question : Consider the following bargaining

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