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5. Pam is hiring Sue to build her custom-made furniture. Sue has one of three options: accept the offer and cooperate, accept the offer but

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5. Pam is hiring Sue to build her custom-made furniture. Sue has one of three options: accept the offer and cooperate, accept the offer but then breach the contract. and don't contract at all with Sue. The payoffs to Pam and Sue are partially determined by whether Sue's costs of producing the furniture are low or high. The payoffs to the two contractors are listed in the normal-form tables below. quttm Sue

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