Edgar Allan Melville is a successful novelist who is negotiating a contract for a new novel with his publisher, McMillan publisher Inc. The novelists contract strategies encompass various proposals for royalties, movie rights, advance and the like. The following payoff table shows that financial gains for the novelist from each contract strategy in thousands Birr (10 Points).

Novelist strategies

McMillan Publisher strategies

Royalties

Movie right

Advance

Royalties

$80,000

$120,000

$90,000

Movie right

$130,000

$90,000

$80,000

Advance

$90,000

$140,000

$100,000

a.Does this payoff table contain any dominant strategy? If yes, determine it.

b.Determine the optimal strategy for the Novelist and the Publisher by showing gain andloss for each.