How much more will they earn

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Reference no: EM131047160

Two hospitals are bargaining with an MCO to get into its provider network. The MCO can earn $100 if it puts one of the hospitals in its network; and $200 if it puts both hospitals in its network. If both hospitals merge, and bargain jointly, how much more will they earn?

a. $0

b. $50

c. $100

d. It depends on the ability of the merged hospital to credibly commit to a takeit-or-leave-it offer.

Reference no: EM131047160

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