Assume that two people are bargaining over how to splt the surplus of theirjoint efforts, which total $100. The only difference between the two is that player A has an associated interest rate of 5 percent and player B has an associated interest rate of 20 percent. Based on Nash bargaining theory, what share of the $100 will Player A wind up with? (Please provide your answer in $ style format,)

Assume that two people are bargaining over how to splt the surplus of theirjoint efforts, which total $100. The only difference between the two is that player A has an associated interest rate of 5 percent and player B has an associated interest rate of 20 percent. Based on Nash bargaining theory, what share of the $100 will Player A wind up with? (Please provide your answer in $ style format,)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.7P

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