Problem 3 Alice and Bob have to divide a dollar. Alice plays first, and then Bob (after he observed Alice's play). Alice

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Problem 3 Alice And Bob Have To Divide A Dollar Alice Plays First And Then Bob After He Observed Alice S Play Alice 1 (61.02 KiB) Viewed 34 times

Problem 3 Alice and Bob have to divide a dollar. Alice plays first, and then Bob (after he observed Alice's play). Alice's strategy consist of proposing an amount x to Bob, where € (0,100] (and we assume that z is a real number). If Bob accepts then he gets x and Alice gets 100 – 3. Otherwise, they both get 0. Find all the subgame perfect equilibria of this game.