E XERCISE 78.2 (A fight) Each of two people has one unit of a resource. Each person chooses how…

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EXERCISE 78.2 (A fight) Each of two people has one unit of a resource. Each person chooses how much of the resource to use in fighting the other individual and how

much to use productively. If each person i devotes yi to fighting then the total output is f (y1, y2) = 0 and person i obtains the fraction pi (y1, y2) of the output,

where

? 1 if yi > yj

2 pi(y1, y2)= ? 1

if yi = yj

? 0 if yi yj.

?