-Consider the one-time Nash bargaining game depicted in Figure 12.1 in which individuals A and B individuals are bargaining over the distribution of $40. Bids must be in increments of $10. In this game, the sum of the players' bids cannot exceed $40. If the sum of the bids are less than $40, each bidder receives his or her bid, and the rest goes to charity. If the sum of the bids exceeds $40, the bidders receive nothing, and $40 is given to charity. How many possible Nash equilibria are there for this game?
A) 1
B) 2
C) 3
D) 4
E) 5

Question

-Consider the one-time Nash bargaining game depicted in Figure 12.1 in which individuals A and B individuals are bargaining over the distribution of $40. Bids must be in increments of $10. In this game, the sum of the players' bids cannot exceed $40. If the sum of the bids are less than $40, each bidder receives his or her bid, and the rest goes to charity. If the sum of the bids exceeds $40, the bidders receive nothing, and $40 is given to charity. How many possible Nash equilibria are there for this game?
A) 1 
B) 2 
C) 3 
D) 4 
E) 5

Quizplus · Accepted Answer

The Answer of 
-Consider the one-time Nash bargaining game depicted in Figure 12.1 in which individuals A and B individuals are bargaining over the distribution of $40. Bids must be in increments of $10. In this game, the sum of the players' bids cannot exceed $40. If the sum of the bids are less than $40, each bidder receives his or her bid, and the rest goes to charity. If the sum of the bids exceeds $40, the bidders receive nothing, and $40 is given to charity. How many possible Nash equilibria are there for this game?
A) 1 
B) 2 
C) 3 
D) 4 
E) 5

-Consider the One-Time Nash Bargaining Game Depicted in Figure 12