1. In the Division of a Decaying Business game, what should you offer if the assets at the start of the game are $4 million rather than $3 million? Now is there a firstmover or second-mover advantage? Why?
2. Analyze the pure Nash equilibrium and mixed Nash equilibrium strategies in the following manufacturer-distributor coordination game. How would you recommend restructuring the game to secure higher expected profit for the manufacturer?
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