Suppose you are attempting to buy a used bicycle and you are bargaining with the

Suppose you are attempting to buy a used bicycle and you are bargaining with the owner over the saleprice. The bike is worth $200 to you and $100 to the owner (he can sell it to another customer at a laterdate). Assume that bargaining takes place with alternating offers and that each stage of bargaining (anoffer and a response) takes a full day to complete. If no agreement is reached after 3 days of bargainingthen the opportunity for sale disappears and both get zero. Suppose that both you and the current ownerdiscount the future according to a discount factor of per day. The seller has allowed you to make thefirst offer. (Denote the buyer as player 1 the seller as player 2 and denote the selling price by x.)