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Business, 22.03.2021 23:30 kevinvalencia01

. Consider the division problems I, II and III on the following page. In each problem, determine the divide-and-choose outcome when A is the divider and B is the chooser and A knows B’s preferences. Determine if the outcome is envy-free. b. To see if there is a "divider’s advantage," determine the outcome in each of the problems if B were to be the divider and knows A’s preferences. Compare A’s welfare in both cases. c. Returning to the case in which A is the divider, suppose it only knows its own preferences and not B’s. What would be the outcome in each of the problems? Again, determine if the outcome is envy-free.

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. Consider the division problems I, II and III on the following page. In each problem, determine the...
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