Identify the sublime perfect equilibrium of this game.

Three players 12 and 3 are deciding on how to divide a cake worth $1 using the following procedu Show more Three players 12 and 3 are deciding on how to divide a cake worth $1 using the following procedure: Player 1 first divides the cake into three portions: xyand z such that x+y+z=1 xyz greater than or equal to 0. Player 2 then picks which of the three portions to consume. Next player 3 picks the picks the one from the remaining two portions followed by player 1 consuming the last one left. a) Identify the subgame perfect equilibrium of this game. How will player 1 divide the cake? b) Suppose that player 1 picks his portion before player 3 does (with the rest of the procedure unchanged). Identify the sublime perfect equilibrium of this game. How will player 1 divide the cake? Show less

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