What''s the probable bargaining negotiation outcome

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Two equal-sized newspapers have overlay circulation of 10% and 10% of the subscribers subscribe to both newspapers. Advertisers are eager to pay $10 to advertise in one newspaper but only $19 to advertise in both, for the reason that they're unwilling to pay twice to reach the same subscriber. What's the probable bargaining negotiation outcome if the advertisers bargain by telling each newspaper that they're going to reach agreement with the other newspaper, consequently the gains to reaching agreement are only $9? Presume the two newspapers merge. What is the probable outcome?

Reference no: EM1399658

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