Using concepts related to subgame perfect equilibrium

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A Dictator Game is described: “Amanda is the dictator. She has a candy bar that she has to share with her little sister Barbara. (Mother will be angry if she doesn’t share at all). Amanda can share 50-50, or she can keep 90% for herself. Barbara’s only choice is to accept or reject what she is offered.” Draw the game in extensive form. Analyze this game using concepts related to subgame perfect equilibrium. What do experiments teach us about this game?

Reference no: EM131387152

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