Consider the following game of ’divide the dollar.’ There is a dollar to be split between two players. Player 1 can make any offer to player 2 in increments of 25 cents; that is, player 1 can make offers of 0 cents, 25 cents, 50 cents, 75 cents, and $1. An offer is the amount of the original dollar that player 1 would like player 2 to have. After player 2 gets an offer, she has the option of either accepting or rejecting the offer. If she accepts, she gets the offered amount and player 1 keeps the remainder. If she rejects, neither player gets anything. Draw the game tree of the modified version of the ’divide the dollar’ game in which player 2 can make a counteroffer if she does not accept player 1’s offer. After player 2 makes her counteroffer - if she does - player 1 can accept or reject the counteroffer. As before, if there is no agreement after the two rounds of offers, neither player gets anything. If there is an agreement in either round then each player gets the amount agreed to
Consider the following game of ’divide the dollar.’ There is a dollar to be split between two players. Player 1 can make any offer to player 2 in increments of 25 cents; that is, player 1 can make offers of 0 cents, 25 cents, 50 cents, 75 cents, and $1. An offer is the amount of the original dollar that player 1 would like player 2 to have. After player 2 gets an offer, she has the option of either accepting or rejecting the offer. If she accepts, she gets the offered amount and player 1 keeps the remainder. If she rejects, neither player gets anything.
Draw the game tree of the modified version of the ’divide the dollar’ game in which player 2 can make a counteroffer if she does not accept player 1’s offer. After player 2 makes her counteroffer - if she does - player 1 can accept or reject the counteroffer. As before, if there is no agreement after the two rounds of offers, neither player gets anything. If there is an agreement in either round then each player gets the amount agreed to.
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