Consider the original divide the dollar game of question (3). How many strategies does player 1 have? How many strategies does player 2 have? Write down all the strategies of player 1, and two strategies of player 2. Explain briefly (in a line or two) why you wrote the strategies of player 2 in the way you wrote them.
Question 3-Consider the following game of divide the dollar. There is a dollar to be split between two players. Player 1 can make any offer to player 2 in increments of 25 cents; that is, player 1 can make offers of 0 cents, 25 cents, 50 cents, 75 cents, and $1. An offer is the amount of the original dollar that player 1 would like player 2 to have. After player 2 gets an offer, she has the option of either accepting or rejecting the offer. If she accepts, she gets the offered amount and player 1 keeps the remainder. If she rejects, neither player gets anything. Represent the game in extensive form using a game tree. Note that here you must assign payoffs appropriately at the terminal nodes.
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