You play the following bargaining game. Player A moves first and makes Player B an offer for

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You play the following bargaining game. Player A moves first and makes Player B an offer for the division of $100. (For example, Player A could suggest that she take $60 and Player B take $40.) Player B can accept or reject the offer. If he rejects it, the amount of money available drops to $90, and he then makes an offer for the division of this amount. If Player A rejects this offer, the amount of money drops to $80 and Player A makes an offer for its division. If Player B rejects this offer, the amount of money drops to 0. Both players are rational, fully informed, and want to maximize their payoffs. Which player will do best in this game?
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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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