Consider a game in which a person called the proposer is given $200. The proposer must choose to split the money with a person called the responder. The money must be split in one of three ways:
(1) Proposer keeps $199; responder gets $1.
(2) Proposer keeps $100; responder gets $100.
(3) Proposer keeps $50; responder gets $150.
The responder can either accept or reject the proposer's offer. If the responder rejects the offer, both players get nothing. Illustrate this game in extensive form. Using backward induction, what is the outcome of this game?

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The Answer of Consider a game in which a person called the proposer is given $200. The proposer must choose to split the money with a person called the responder. The money must be split in one of three ways:
(1) Proposer keeps $199; responder gets $1.
(2) Proposer keeps $100; responder gets $100.
(3) Proposer keeps $50; responder gets $150.
The responder can either accept or reject the proposer's offer. If the responder rejects the offer, both players get nothing. Illustrate this game in extensive form. Using backward induction, what is the outcome of this game?

Consider a Game in Which a Person Called the Proposer