Consider the following discrete version of the ultimatum game. Player 1 offers to give x ∈ {0,1/2,1} to player 2. If player 2 says "Y," then player 2 collects x and player 1 receives the remainder, 1- x . If player 2 says "N," then each gets zero.
(a) Construct an extensive form of this game.
(b) Construct its normal form. [You can use a simplifying notation for each strategy, with an explanation about what a generic strategy stands for.]
(c) Apply IEDS to narrow down your predictions. Is this game dominance solvable?