2. Three dollar bills are to be shared between two players. First, player A chooses how to share the money, then player

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2 Three Dollar Bills Are To Be Shared Between Two Players First Player A Chooses How To Share The Money Then Player 1 (154.94 KiB) Viewed 53 times

2. Three dollar bills are to be shared between two players. First, player A chooses how to share the money, then player B responds by either accepting or rejecting the proposal. If the proposal is rejected, two of the dollar bills are removed and now player B chooses how to share the remaining money. The game ends when a proposal is accepted, or when there is not enough bills to remove two, in which case neither player receives any. Draw an extensive form of this sequential game and use backward induction to analyze it. You may draw a tree or digraph, whichever you prefer.