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In a negotiation game, a Proposer is given $100 to divide. The Proposer makes a single take-it-or-leave-it offer simultaneously to two Responders. If at least one Responder accepts the offer, the Proposer keeps the remaining amount, and one of the accepting Responders (chosen at random if both accept) receives the offered amount. If both Responders reject the offer, no one receives any money. Assuming all participants are rational and seek to maximize their own payoff, which of the following offers from the Proposer is most likely to be accepted while maximizing the Proposer's gain?
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In a negotiation game, a Proposer is given $100 to divide. The Proposer makes a single take-it-or-leave-it offer simultaneously to two Responders. If at least one Responder accepts the offer, the Proposer keeps the remaining amount, and one of the accepting Responders (chosen at random if both accept) receives the offered amount. If both Responders reject the offer, no one receives any money. Assuming all participants are rational and seek to maximize their own payoff, which of the following offers from the Proposer is most likely to be accepted while maximizing the Proposer's gain?
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Impact of Competition on Bargaining Power