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Wireless video multicast efficiently streams video to multiple receivers. When designing a wireless video multicast system, the system must be able to handle (i) packet losses induced by the underlying wireless channel and (ii) receiver heterogeneity in channel condition in a multicast group. We propose Layer Bargaining, a wireless video multicast design in infrastructure-based wireless networks that simultaneously addresses both of the above problems. To combat packet losses and improve received video quality, we propose a layered hybrid ARQ scheme that provides unequal protection to layered video by exploring light-weight feedback. To deal with receiver heterogeneity, we propose a framework based on Nash bargaining game for operating point selection in a multicast group. Our simulation results show that the layered hybrid ARQ scheme significantly outperforms the conventional hybrid ARQ scheme with single layer video and the layered FEC scheme. The results also show that the game-based operating point selection provides a high overall system performance while facilitating fairness among receivers. We carefully examine the overhead and the computational complexity of our proposed schemes, through both theoretical analysis and OPNET simulation/experiment, and show that Layer Bargaining is practically feasible under representative settings.