MephistoS meinte am 1. Jan, 19:34:
Does player 1 always have a higher payoff?
If both players have the same discounting factors, it's the case but usually the players have different discounting factors. Different discounting factors are an appropriate way to enrich the model. The model becomes really interesting if both players don't know their opponent's discounting factor.
Mahalanobis antwortete am 1. Jan, 23:56:
Setting
δ1 = δ2 makes sense when the discounting factor is given exogenously (e.g.: somebody asks you to particpiate in an experiment where you have to bargain over the divison of a dollar and the discounting factor is given by the guy who runs the experiment ;-D).What's really funny: The amount of money I would offer to you in such a game would be lower than the amount I would offer to people unknown to me.... ;-DD.
