Two people, Baker and Cutler, play a game in which they choose and divide a prize. Baker decides how large the total prize should be; she can choose either $10 or $100. Cutler chooses how to divide the prize chosen by Baker; Cutler can choose either an equal division or a split where she gets 90% and Baker gets 10%. Write down the payoff table of the game and find its equilibria for each of the following situations:
(a) When the moves are simultaneous.
(b) When Baker moves first.
(c) When Cutler moves first.
(d) Is this game a prisoners’ dilemma? Why or why not?
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here