3 Bargaining Suppose that Cam Newton is negotiating a contract with the Los Angeles Chargers. Cam has an offer from the New England Patriots for $10 million a year. If he signs with the Chargers, they will earn $40 in revenue from the signing. The Chargers next best option is to sign Jameis Winston. They would earn $30 from signing Winston and would pay him a contract of $10 million. Unless otherwise noted, your answers should be in the same units as the problem specifies (millions). a If Newton's bargaining power is w =0.8, what is the negotiated salary under Nash Bargaining ? b If the Chargers only have 16 million dollars in salary cap space, what is the highest value of w (Newton's bargaining power) such that the Chargers can sign him