Economic and Game Theory
|"Inside every small problem is a large problem struggling to get out."|
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The game is exactly the same as the classic game of alternating offers (Rubinstein 1982), 2 players, fixed dicount factors etc. The only difference is that only player 1 offers.
The result should be that player 1 takes all the pie , but I'm having a problem with proving it, and with showing that this is the only sub game perfect equilibrium.