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Doumced is the current kickboxing welterweight champion for the Prestige kickboxing promotion. His contract has come to an end, but being the champion, he wants

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Doumced is the current kickboxing welterweight champion for the Prestige kickboxing promotion. His contract has come to an end, but being the champion, he wants to renegotiate his contract for his next fight. Prestige makes its money through pay-per-view buys, i.e. online subscriptions to watch the fight. The fighters can promote their fight through social media in order to influence the pay-per-view buys. Doumced's utility function is up(x) =X1/2 ? 100e where x is the money he makes expressed \textbf(in dollars) and e denotes the amount of effort he provides: Either e = 0 (no effort) or e = 1 (effort). The table below shows the estimated pay-per-view buys (either high = 400, 000 or low = 100, 000) if Doumced puts effort into the promotion of his next fight, versus if he doesn't.

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Low High e=1 0.2 0.8 e=0 0.7 0.3

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