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Subgame perfect equilibrium of game

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Consider the following discounted, three-period bargaining game. The discount factor is 5, Where 0 < 5 < 1. In this game, player 1 makes the ?rst offer. If player 2 rejects this offer, then player 1 makes another offer. If player 2 rejects the second offer, then player 2 makes the ?nal offer. In other words, player 1 makes the offers in periods 1 and 2, whereas player 2 makes the offer only in period 3. Compute the subgame perfect equilibrium of this game.

Reference no: EM131433864

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