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Dutch Manager (Revenue-Maximizer) Low Moderate High British Manager Low 600, 600 550, 687.5 500, 750 (Revenue-Maximizer) Moderate 687.5, 550 625, 625 562.5, 675 High 750,

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Dutch Manager (Revenue-Maximizer) Low Moderate High British Manager Low 600, 600 550, 687.5 500, 750 (Revenue-Maximizer) Moderate 687.5, 550 625, 625 562.5, 675 High 750, 500 675, 562.5 600, 600 b. Now consider the game between the British and Dutch shareholders as to what kind of contracts to give their managers. Assume they simultaneously choose between a contract that gives the manager 1% of profit and one that gives him b of 1% of revenue. Assume, as before, that shareholders payoff is profit (and we ignore the trivial amount that they pay to their managers). After a pair of contracts are selected, they are revealed to both managers and the managers then choose between supply levels of low, moderate, and high. Find all subgame perfect Nash equilibria

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