Random Game Theory Question
Here's the setup:
You and another contestant are given a prize pool of $1000, and the two of you have one minute to come to an agreement as to how to divide the money between yourselves. If you come to an agreement within the time limit, you each get your agreed-upon share, plus, you get an extra prize of $X and the other contestant gets an extra prize of $Y. X and Y are known by both players at the start of the game. If no agreement is reached, neither of you gets any money.
How does your strategy change as the values of X and Y change?
You and another contestant are given a prize pool of $1000, and the two of you have one minute to come to an agreement as to how to divide the money between yourselves. If you come to an agreement within the time limit, you each get your agreed-upon share, plus, you get an extra prize of $X and the other contestant gets an extra prize of $Y. X and Y are known by both players at the start of the game. If no agreement is reached, neither of you gets any money.
How does your strategy change as the values of X and Y change?