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AndrewKraus AndrewKraus
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7 years ago
Two players are playing a game. Player 1 is given $100 and is asked to offer a certain share of the money to Player 2. Player 2 can then choose to accept or reject the offer. If he accepts the offer, the money will be split between the two players in the ratio as decided by Player 1. If he rejects the offer, neither of the players will get anything.
a)   Assume that both players prefer more money to less. How would Player 1 choose his optimal strategy in this case?
b)   If Player 2 prefers fairness to money, how will his decision change?
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Microeconomics

Microeconomics


Edition: 1st
Authors:
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SudzburySudzbury
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University of Kansas Alumni

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AndrewKraus Author
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#2
7 years ago
Needed this for my economics assignment, thanks
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