For all you game theorists out there.
Here is a simple game with two players, A and B. A is given $1000 and is able
to split it between he and B any way he chooses. B has the option to accept or
reject the offer. If he accepts the offer, the money is divided according to
A's split. If B rejects the offer, both players get nothing.
At face value, this game isn't interesting if played one time. B should always
accept. However, if this game is played 1000 times. it gets more interesting.
What is A's optimal offer strategy? What is B's optimal strategy