? E XERCISE 251.2 (Horse trading game with large seller) Consider the variant of the horse…

? EXERCISE 251.2 (Horse trading game with large seller) Consider the variant of the horse trading game in which there is a single owner who has two horses. Assume that the owner’s payoff is σ1 + r if she keeps one of her horses and 2σ1 + r if she keeps both of them, where r is the amount of money she receives. Assume that there are at least two nonowners, both of whose values of a horse exceed σ1. Find the core of this game. (Do all trades take place at the same price, as they do in a competitive equilibrium?)