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3. (45 points) Alexandra and Clark want to see a movie together. The tickets together cost $20 ($10 each). Seeing the together movie is worth
3. (45 points) Alexandra and Clark want to see a movie together. The tickets together cost $20 ($10 each). Seeing the together movie is worth $30 to Alexandra and $15 to Clark. Seeing the movie apart is worth $15 to Alexandra and $0 to Clark. Not seeing a movie at all is worth $0 to either person. In order for Clark to see the movie at all, Alexandra needs to buy him a ticket, since she lives closer and can get there faster to stand in line A. Find the outside option value for each person Ex Ante B. What is the maximum total benet generated by both people working together? C. Find the nash bargaining payoff for each person. Who has to pay who and how much to achieve these payoffs? Ex Post Now assume that Alexandra already purchased the tickets. Clark wants to renegotiate D. Find the new outside option for each person. E. Find the new nash bargaining payoff for each person. Who has to pay who and how much to achieve these payoffs
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