3. (20 points) A. Say that company 1 and company 2 have made a contract yielding payoffs (10,10). Company 1 can hold up company 2 and renegotiate for payoffs (13,7). If hold up occurs, company 2 can accept the renegotiation or sue, returning the terms of the original contract and then costing both firms 5. Draw the corresponding extensive form game. Find the equilibrium outcome. B. Now imagine that, if company 1 attempts to hold up company 2, company 2 can accept the renegoti- ation, sue, or retaliate. Accepting and Suing behave as in part A. Retaliating steals 5 from company 1 and gives it to company 2. If company 2 retaliates company 1 will get a chance to respond. Company 1 can accept the retaliation or sue, returning the terms of the original contract and then costing both firms 5. Draw the corresponding extensive form game. Find the equilibrium outcome.