Two people, Baker and Cutler, play a game in which they
choose and divide a prize. Baker decides how large the total prize should be;
she can choose either $10 or $100. Cutler chooses how to divide the prize
chosen by Baker; Cutler can choose either an equal division or a split where
she gets 90% and Baker gets 10%. Write down the payoff table of the game and
find its equilibria for each of the following situations:
(a) When the moves are simultaneous.
(b) When Baker moves first.
(c) When Cutler moves first.
(d) Is this game a prisoners’ dilemma? Why or why not?