New answers tagged bargaining
2
votes
Setting up the model for a pie-sharing problem
Discounting does not work like that. Discounting means how much you discount the future relative to the present---e.g., receiving \$1 tomorrow is the equivalent of receiving \$0.90 today.
What you are ...
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3
votes
Setting up the model for a pie-sharing problem
With discounting, the situation is a classic Rubinstein bargaining game, in which two players make alternating offers to split a shrinking pie.
Without discounting, I'm not sure an equilibrium ...
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