Find maximum number of tokens that original leader gets


Consider the game with 100 indivisible tokens. 5 players have the choice to distribute tokens. Consider player 1 be team "leader" who proposes the vote which tokens are distributed equally. Other 4 team members can agree or disagree on notion. If half or more agree (comprising leader) with team leader, then tokens are distributed equally (20,20,20,20,20). If more than half disagree, then leader gets to keep 1 token and then he is kicked out.

If leader was kicked out, game is played again with 99 tokens and 4 players with player two being "leader." If half of the players agree (consisting leader) then coins or split. If not, player two gets to keep 1 token and is then kicked out.

The game played until we reach 97 tokens and player 4 and player 5. If player 4 agrees then game is ended and 97 tokens are split (as player 4 has half the vote).

Find maximum number of tokens that original leader (leader 1) gets to keep across all subgame perfect equilibria of the game? Determine maximum number of tokens leader four gains in all subgame perfect equilibria.

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Mathematics: Find maximum number of tokens that original leader gets
Reference No:- TGS0861452

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