Bargaining
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- You will be paired into groups of two.
- Players within a pair make alternating offers on how to split a sum of money.
- Use the slider to choose the division and press Submit.
- Each time an offer is rejected, the sum of money decreases by the Shrink Rate (shown on your screen).
- The game ends when one of the following happens:
- An offer is accepted.
- The money to be divided shrinks to $0.
- The offer made in the final round is rejected.
- Assume a four-round game starting with $100 where the Shrink Rate is 10%.
- In round 1, Player 1 proposes a division of $100.
- If Player 2 rejects this offer, then in round 2 Player 2 proposes a division of $90.
- If Player 1 rejects this offer, then in round 3 Player 1 proposes a division of $81.
- If Player 2 rejects this offer, then in round 4 Player 2 proposes a division of $72.
- Player 1 chooses whether to accept this final offer.
- Payoffs are determined by an accepted offer. Players earn $0 if no offer accepted.