12.please help to fill in all blanks and questions. please put answers in bold so that I can read it easier. thank you.
12 points Skipped Refe re nces Courtney is considering whether to have her backyard fenced in by Gary the Fence Guy. The fact that Courtney has to pay the full price of the new fence up front makes her worried about the possibility of her new fence not being of high quality. The possible outcomes for Courtney are $0 if no fence is built, $3,000 if a lowquality fence is built, and $3,000 if a highquality fence is built, For Gary, the outcomes are $300 if no fence is built, $2,500 if a lowquality fence is built, and $1,500 if a highquality fence is built. To help her make her decision, Courtney models this situation as a two-stage decision tree, where her decision to hire Gary is the decision at point A, and Gary's decision to build a highquality fence or a lowquality fence is point B. Instruction: If you are entering any negative numbers be sure to include a negative sign H in front of those numbers. + No fence ordered _______ + $ |:| for Courtney | + $ E] for Gary A I , I J\" Low $ for Courtney qual'ty' | | $ for Gary + Fence ordered B l I $ for Courtney + High $ for Gary quality a. The equilibrium outcome is: Courtney: 3; El. Gary: $ I: . b. What if Courtney and Gary the Fence Guycould negotiate so that Gary only gets paid $1,000 before the fence is built and the remaining balance is only paid if the fence is of high quality. Assuming the same payoffs for no fence being built and a high-quality fence being completed, would the equilibrium outcome change? The equilibrium outcome is now . The possibility to cooperate will benefit . 12 points Skipped References Courtney is considering whether to have her backyard fenced in by Gary the Fence Guy. The fact that Courtney has to pay the full price ofthe new fence up front makes her worried about the possibility of her new fence not being of high quality. The possible outcomes for Courtney are $0 if no fence is built, $3,000 if a lowquality fence is built, and $3,000 if a highquality fence is built. For Gary, the outcomes are $300 if no fence is built, $2,500 if a lowquality fence is built, and $1,500 if a highquality fence is built. To help her make her decision, Courtney models this situation as a twostage decision tree, where her decision to hire Gary is the decision at point A, and Gary's decision to build a highquality fence or a lowquality fence is point B. Instruction: If you are entering any negative numbers be sure to include a negative sign () in front ofthose numbers. + No fence ordered A I | + Low quality: | | +Fence ordered - B | | + High quality: a. The equilibrium outcome is: Courtney: $ I: . Cary: 55 + $ |:|for Courtney + $ |:| for Gary $ I: for Courtney $ I: for Gary $ I: for Courtney $ |:| for Gary b. What if Courtney and Gary the Fence Guycould negotiate so that Gary only gets paid $1,000 before the fence is built and the remaining balance is only paid ifthe fence is of high quality. Assuming the same payoffs for no fence being built and a highquality fence being completed, would the equilibrium outcome change? The equilibrium outcome is no J (Click m select) 41,000 for Courtney and $1,000 for Cary The possibility to cooperate w $3,000 m, Gummy and $1,500 for Gary $0 for Courtney and -$300 for Gary 43,000 for Courtney and $2,500 for Gary Courtney is considering whether to have her backyard fenced in by Gary the Fence Guy. The fact that Courtney has to pay the full 12 price of the new fence up front makes her worried about the possibility of her new fence not being of high quality. The possible outcomes for Courtney are $0 if no fence is built, -$3,000 if a low-quality fence is built, and $3,000 if a high-quality fence is built. For Gary, the outcomes are -$300 if no fence is built, $2,500 if a low-quality fence is built, and $1,500 if a high-quality fence is built. To help her make her decision, Courtney models this situation as a two-stage decision tree, where her decision to hire Gary is 2 the decision at point A, and Gary's decision to build a high-quality fence or a low-quality fence is point B. points Instruction: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Skipped + No fence ordered + for Courtney $ for Gary eBook + Low LA for Courtney quality: EA References for Gary + Fence ordered ----- B | for Courtney to to + High for Gary quality. a. The equilibrium outcome is: Courtney: $ Gary: $ b. What if Courtney and Gary the Fence Guy could negotiate so that Gary only gets paid $1,000 before the fence is built and the remaining balance is only paid if the fence is of high quality. Assuming the same payoffs for no fence being built and a high-quality fence being completed, would the equilibrium outcome change? The equilibrium outcome is now (Click to select) The possibility to cooperate will benet v (Click to select) Gary but not Courtney Courtney and Gary neither Courtney nor Gary Courtney but not Gary
