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home / homework help / search (A and B are bargaining over a business oppportunity that is worth $50 Show more home / homework help / search (A and B are bargaining over a business oppportunity that is worth $50000. A has an outside option that will give her $10000 if she does not reach an agreement with B while Bs outside option is $24000. Bargaining proceeds as in the ultimatium game. First A proposes a division then B accepts or rejects. If B accepts the division is implemented. If B rejects each player obtaines their outside option. Assume if a player is indifferent between a proposed division and his or her outside options then the player accepts the division. Using backward induction the prediction is that: A propsoes $50000 for her and $0 for B. A proposes $10000 for her and $40000 for B. B rejects every popposal and takes his outside option. None of the above.) Show less
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