ECON 2350 Midterm: ECON 2350 w01_f
Document Summary
Economics 2350dw 3. 0 : intermediate microeconomic theory ii: bucovetsky time=2 hours. Part a counts for 42 percent of the grade, part b for 60 ( that is, there are 2 bonus marks ). Part b: do any 5 of the following 8 questions. Explain brie y: find all of the nash equilibria to the following game in normal form : Players 1 and 2 own neighbouring houses, and someone has o ered million for the two houses together. The o er is only valid for an hour. The players must decide how to split the money, before the o er expires. Player 1 moves rst, proposing some way of splitting the million. Player 2 moves next, either accepting or rejecting the proposal. If he rejects player 1"s proposal, he then gets to propose an alternative division of the money. If player 2 does make such a counter proposal, player 1 gets to accept or reject the counter proposal.
