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Mario and Luigi are bargaining on how to divide a pizza. Normalize the size of t

ID: 1101002 • Letter: M

Question

Mario and Luigi are bargaining on how to divide a pizza. Normalize the size of the pizza to be one. If Mario gets x, his utility is UM (x). Then Luigi can only consume 1 - x, and his utility is UL(1-x). Now suppose Mario has utility function UM (x) = x, threat point DS1 = 1/4 and barganning power theta = 1/2. Luigi has a utility of UL (1 - x) = (1 - x) and threat point DL = 0. Compute for the allocation under Nash Bargainning. Now suppose Mario has utility function U (x) = 2x. threat point D =1/2 and barganning power Theta = 1/2. Luigi has a utility of UL (1 - x) = 3 (1 - x) and threat point DL = 0. Compute for the allocation under Nash Bargainning. Is the solution the same as part (a)? Now consider the Kalai's proportional bargaining solution with equal bargainning power. Compute the bargainning solution under the parameters in part (a). Do part (c) again with parameters in part (b). Is the solution the same as part (c)? We say a bargainning solution is invariant to affine transformation if the bargaining solution under for any positive numbers alpha LdL + Beta L and arbitrary real beta M, beta L. Is this a desirable property? Why? Does the Nash Bargainning solution satisfy this property? How about the Kalai's solution?

Explanation / Answer

1.

a)(a)F = 152*0.13 = 19.76 N and b) a = F/m = 19.76/0.68 = 29.06 m/s^2

4.

Approach using energy

E = (30kg)g(15cm) + ?(195N/m)(15cm)

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