Question

You play the following bargaining game. Player $A$ moves first and makes Player $B$ an offer for the division of $\$ 100$. (For example, Player $A$ could suggest that she take $\$ 60$ and Player $B$ take $\$ 40 .$ ) Player $B$ can accept or reject the offer. If he rejects it, the amount of money available drops to $\$ 90,$ and he then makes an offer for the division of this amount. If Player $A$ rejects this offer, the amount of money drops to $\$ 80$ and Player $A$ makes an offer for its division. If Player $B$ rejects this offer, the amount of money drops to 0 Both players are rational, fully informed, and want to maximize their payoffs. Which player will do best in this game?

          You play the following bargaining game. Player $A$ moves first and makes Player $B$ an offer for the division of $\$ 100$. (For example, Player $A$ could suggest that she take $\$ 60$ and Player $B$ take $\$ 40 .$ ) Player $B$ can accept or reject the offer. If he rejects it, the amount of money available drops to $\$ 90,$ and he then makes an offer for the division of this amount. If Player $A$ rejects this offer, the amount of money drops to $\$ 80$ and Player $A$ makes an offer for its division. If Player $B$ rejects this offer, the amount of money drops to 0 Both players are rational, fully informed, and want to maximize their payoffs. Which player will do best in this game?

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