Illustrate what is the cooperative surplus

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Reference no: EM1354462

Unclear facts; each believes chances of prevailing are 50%. Court costs will be $50 each if it goes to trial; no costs if it is Court settled. Settled. A. What is Arthur"s threat value? B. What is Betty"s threat value? C. If Arthur and Betty cooperate together in settling their If disagreement, what is the net cost of resolving the dispute? Dispute? Zero, by assumption. (continued) d. What is the cooperative surplus? $100, the cost of litigating. E. What would be a reasonable settlement for Betty to pay What Arthur?

Reference no: EM1354462

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