Example: air traffic controller
Nash bargaining solution - MIT OpenCourseWare
Mar 30, 2010 · Rubinstein Bargaining Model with Alternating Offers We showed that the following stationary strategy profile is a subgame perfect equilibrium for this game. Player 1 proposes x∗ and accepts offer y if, and only if, y ≥ y 1 ∗. 1 Player 2 proposes y ∗ and accepts offer x if, and only if, x ≥ x 2 ∗, 2 where x 1 ∗ 2= 1 − δ, y 1 ...
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