You want to buy a seller’s condo. You look up what the seller paid for the condo 2 years ago and…

You want to buy a seller’s condo. You look up what the seller paid for the condo 2 years ago and find that she paid $305,000. You figure that she will absolutely not sell below this price. The seller has listed the condo at $350,000. Assume that the sequential bargaining problem will go at most 3 rounds before everyone is fed up with the process and the deal falls apart. Take the discount factors for each player to be δ = 0.99. What should the offers be at each stage? What if the process could go on indefinitely?