My sons (“Boy 1” and “Boy 2”) are negotiating over how to divide a pile of...

My sons (“Boy 1” and “Boy 2”) are negotiating over how to divide a pile of 20 chocolates. Boy 1 will engage Boy 2 in up to three rounds of negotiations. The order of events is:

FIRST ROUND: Boy 1 makes Boy 2 an initial offer. Boy 2 accepts or rejects. If he accepts, the game ends and the two boys get their chocolates. If Boy 2 rejects, I punish them for not working together by eating 5 chocolates myself. The game then continues with 15 chocolates to be divided.

SECOND ROUND: Boy 2 makes an offer. Boy 1 accepts or rejects. If he accepts, the game ends and the two boys get their chocolates. If Boy 1 rejects, I eat 5 chocolates myself and the game continues with 10 chocolates to be divided.

THIRD ROUND: Boy 1 makes a final offer. Boy 2 accepts or rejects. If he accepts, the two boys get their chocolates. If Boy 2 rejects, the game ends and I eat all the remaining chocolates. Note that I am expecting you to make an assumption of spiteful players, all else equal. Said another way, I assume that “reject” will break the indifference of getting zero either way...

(a) (5) If we reach the third round of the game, what would be Boy 1’s offer?

(b) (5) Given that my sons know (a) in round 2, what would be Boy 2’s 2nd Round offer?

(d) (10) What is Boy 1’s first-round strategy? What is Boy 2’s first-round strategy? What is the equilibrium outcome of the game?

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

2. (25) My sons (“Boy 1” and “Boy 2”) are negotiating over how to divide a...

2. (25) My sons (“Boy 1” and “Boy 2”) are negotiating over how to divide a pile of 20 chocolates. Boy 1 will engage Boy 2 in up to three rounds of negotiations. The order of events is: FIRST ROUND: Boy 1 makes Boy 2 an initial offer. Boy 2 accepts or rejects. If he accepts, the game ends and the two boys get their chocolates. If Boy 2 rejects, I punish them for not working together by eating 5...

Homer (H) and Lenny (L) are negotiating over how to divide a giant box of 100...

Homer (H) and Lenny (L) are negotiating over how to divide a giant box of 100 donuts. H will engage L in up to three rounds of negotiations. The order of events is: FIRST ROUND: H makes L an initial offer. L accepts or rejects. If L accepts, the game ends and H and L each get their donuts. If L rejects, 20 donuts get eaten by mice (because of the delay) and the game continues with 80 donuts to...

A young boy, age 2 years, pulled a pot of boiling water over his head, arms,...

A young boy, age 2 years, pulled a pot of boiling water over his head, arms, and chest, resulting in a mixed burn to the anterior surface of his head and arms, chest, and feet. Discuss the factors that determine the classification of the types of burns and determine what type(s) this victim probably has. (See Classification of Burns.) Discuss how the physicians in the emergency room will determine the percentage of the body that may be burned and what...

A young boy, age 2 years, pulled a pot of boiling water over his head, arms,...

A young boy, age 2 years, pulled a pot of boiling water over his head, arms, and chest, resulting in a mixed burn to the anterior surface of his head and arms, chest, and feet. Discuss the additional effects associated with burns and the treatments involved, which include shock, pain, electrolyte and fluid imbalances, respiratory complications, infection, metabolic problems, and anemia. (See Effects of Burn Injury.) Discuss the actions to promote the healing of burns. Specifically address the problems that...

1) What is the probability that two individuals will have five sons in a row? 2....

1) What is the probability that two individuals will have five sons in a row? 2. In humans, freckles are dominant over no freckles. A man with freckles marries a woman with no freckles. They have three children, two of whom have freckles and one of whom does not. a. What is the man’s genotype? b. What kind(s) of gametes can he produce? c. What is the woman’s genotype? d. What kind(s) of gametes can the woman produce? e. What...

How to perform a celebratory toast for my classmates on the hard work accomplished over the...

How to perform a celebratory toast for my classmates on the hard work accomplished over the course. celebratory toast essay

1.how can i improve my memory? 2. how is memory measured? 3. how does the brain...

1.how can i improve my memory? 2. how is memory measured? 3. how does the brain form and store memorise?

Life Insurance Questions: 1. Heather is a single mother of 2 sons, Tyler (3) and Malcolm...

Life Insurance Questions: 1. Heather is a single mother of 2 sons, Tyler (3) and Malcolm (5). As a dentist, Heather earns $125,000 annually. As the sole income earner for the family, Heather is considering buying disability insurance in order to receive an income replacement benefit should she experience a loss of income is she becomes disabled or ill and cannot work. Heather wants the policy to pay her benefits if she cannot perform her work and functions as a...

Brief Research on following : 1) Pile end-bearing capacity in sand considering soil compressibility 2) End-bearing...

Brief Research on following : 1) Pile end-bearing capacity in sand considering soil compressibility 2) End-bearing capacity of piles in crushable soils 3). Axial capacity of driven piles in sand 4) Settlement of vertically loaded piles

Subjects