ECONOMICS W/CONNECT+20 >C<
20th Edition
ISBN: 9781259714993
Author: McConnell
Publisher: MCG CUSTOM
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Chapter 8, Problem 4DQ
To determine
The connection between the heuristics and the bad publicity.
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4. Consider a three-player bargaining, where the players are negotiating over
a surplus of one unit of utility. The game begins with player 1 proposing
a three-way split of the surplus. Then player 2 must decide whether to
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proposal. Finally, player 3 must decide whether to accept or reject current
proposal (it is player 1's if player 2 accepts or player 2's if player 2 offer a
new one). If he accepts, then the players obtain the specified shares of the
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(b) Determine the subgame perfect NE.
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Chapter 8 Solutions
ECONOMICS W/CONNECT+20 >C<
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