Suppose you and a complete stranger must split $100 in even dollar increments.You propose a split, and the stranger with whom you are splitting the $100 either accepts or rejects.If she rejects, you both receive nothing.
a.What is the Nash equilibrium for this game?
b.The Nash equilibrium solution is not frequently observed in practice.Explain why.

Nash Equilibrium

An idea in game theory that suggests a player cannot improve their situation by changing strategy if every other player's strategy remains the same.

Even Dollar Increments

A pricing strategy where goods or services are priced in whole dollar amounts rather than including cents.

Complete Stranger

A person whom one does not know or with whom one is not familiar.