Modify Solomon’s decision problem so that each woman actually loses the value she places on the…

Modify Solomon’s decision problem so that each woman actually loses the value she places on the child if she is not awarded the child. The value to the true mother is assumed to satisfy CT > 2CF . Assume that Solomon knows both CT and CF and so can set V > 2CF . Apply backward induction to find the Nash equilibrium and verify that the true mother always gets the child.                     

 

 

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