Question for all you aspiring game theorists...
For all you game theorists out there.
Here is a simple game with two players, A and B. A is given $1000 and is able
to split it between he and B any way he chooses. B has the option to accept or
reject the offer. If he accepts the offer, the money is divided according to
A's split. If B rejects the offer, both players get nothing.
At face value, this game isn't interesting if played one time. B should always
accept. However, if this game is played 1000 times. it gets more interesting. Now consider that there will be 10 games going on at the same time with 10 different As and 10 different Bs. For the competition, the As are competing against the other As, not their actual opponent in the game.
What is A's optimal offer strategy? What is B's optimal strategy?
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