Is there any Pareto improvement over the Subgame Perfect Nash Equilibrium hiring decisions of the litigants? Explain.
1. Assume that two risk-neutral individuals i E N {1, 2} dispute over some property of value v > 0 and they appeal to court for resolution. The legal procedure is a two-period game. In the first period of the game, litigants simultaneously decide whether to hire an attorney or not and the first period […]