Consider the following game:

P1 (7, 3) P2 (4, 5) (3, 6) Suppose each player has Fehr-Schmidt preferences. So, for an outcome (21, 12), we have U1(21, 12) = 21 - 01 max (x2 - 21, 0} - 81 max {r1 - 12, 0} and U2(21, 12) = 12 - 02 max ($1 - 12, 0} - 8, max {12 - 21, 0} Throughout this problem, assume B2 > ?. (a) Compute U2(4, 5) and U2(3, 6). Which action will P2 choose at their decision node? (b) Compute U1 (7,3) and U1(4, 5). Under what condition will Pl prefer outcome (4, 5) over (7,3)? (The condition is an inequality involving on and 31). (c) The Fehr-Schmidt model assumes 0