Abstract

In all, n random variables X 1, …, X n are observed sequentially. After X i =x i is observed the leader decides whether he accepts the value x i or not. If he does not accept it, then the follower similarly decides to accept it or not. When one of them accept it, if at least one (none) of X i+1, …, X n is larger than x i , then the accepting player loses (wins). When both players do not accept it, the next random variable X i+1 is observed. We obtain the stackelberg solutions for two cases: with recall and without recall.

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