(AGT1E13) [Game Theory] Solving Nash Demand Game with Outside Option: All Equilibrium

In this episode I solve for all Nash equilibrium of the Nash Demand game with varying outside option.
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[@senaklnc1494]

Hi, first of all, thank you for this great clarification. I have a question, what is the difference between NDG and divide the dollar game? Is it about payoffs when the offer rejected? Since both agents receive zero payoffs in the DD game if the offer is rejected. Or is it about equilibrium payoffs? Thank you.

[@selcukozyurt]

Hi Sena. Nash demand game (suggested by John Nash) is more general than divide the dollar game. Bit the version I solve here has elements from both: for one players are risk neutral (i.e., share of x has utility of x). But I also incorporate outside option other than 0. Hope that was helpful

[@senaklnc1494]

@@selcukozyurt thank you hocam. It was very helpful.