Identify all of the pure-strategy nash equilibria in game

Reference no: EM132473219

Charlie and Diego (both risk-neutral expected-money maximizers) find two $100 notes on a park bench. If they can agree how to divide the money then they will keep it, otherwise they will hand it in to lost property. Assume the notes cannot be split. There are only three possible ways to divide them as followed:

($200, $0),($100,$100) and ($0,$200).

Charlie begins by proposing a division which can be accepted or rejected by Diego. If Diego rejects you both get nothing.

1. Draw the game tree.

2.Draw the payoff matrix for this game if Charles decides a split and Diego simultaneously chooses whether to accept or reject, identifying pure strategies as in part1

3. Identify all of the pure-strategy Nash equilibria in this game.

Reference no: EM132473219

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