answer 2 questions 36

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Consider a home seller and buyer in terms of a game in form. Suppose the buyer either makes an offer or not, then the seller can respond by rejecting the offer, accepting it, or asking for a higher price. Draw it out, and create your own set of payoffs (it can be in dollars). Is there a stable equilibrium?

Which market structure is the most efficient in a static sense? Which is most efficient in a dynamic sense? Explain your reasoning.

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