Illustrate what is betty threat value

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Reference no: EM1364298

Arthur alleged that Betty broke his valuable kettle. Arthur and Betty independently believe that the chances of either side winning a court case are an even 50%. Litigation will cost each party $50 and the costs of settling out of court are nil. What is Arthur's threat value? What is Betty's threat value? If Arthur and Betty cooperate together in settling their disagreement, what is the net cost of resolving the dispute?

Reference no: EM1364298

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