Question 6 20 marks] a) Which factors influence the bargaining outcome in the Rubinstein for- mulation of the bargaining
Posted: Thu May 19, 2022 8:43 am
- Question 6 20 Marks A Which Factors Influence The Bargaining Outcome In The Rubinstein For Mulation Of The Bargaining 1 (33.28 KiB) Viewed 69 times
- Question 6 20 Marks A Which Factors Influence The Bargaining Outcome In The Rubinstein For Mulation Of The Bargaining 2 (33.28 KiB) Viewed 69 times
Question 6 20 marks] a) Which factors influence the bargaining outcome in the Rubinstein for- mulation of the bargaining problem? b) What is the connection between the Rubinstein bargaining solution and the Nash bargaining solution? Explain your answer by drawing a sketch of the bargaining set and the different solutions. 2 b) Abigail (A) and Balan (B) want to share a pizza of size 1. Suppose both agents have the same utility function u(x) = Vr for pizza, Abigail discounts with A = 1/2 and Balan discounts with 88 = 1/2. Abi- gail moves first. Calculate the Rubinstein solution of the bargaining problem. c) Why does Abigail get a larger share of the pizza?