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Please help solve this problem thank you so much!! 4 . ll'ltlnl'ldllal Problems 15-2! Every year, management and labor renegotiate a new employment contract by

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Please help solve this problem thank you so much!!

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4 . ll'ltlnl'ldllal Problems 15-2! Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator, who chooses the best proposal (effectively giving one side or the other $2 million). Each side can choose to hireI or not hire, an expensive labor lawyer {at a cost of $200,000) who is effective at preparing the proposal in the best light. If neither hires a lawyer or if both hire lawyers, each side can expect to win about half the time. If only one side hires a lawyer, it can expect to win nine tenths, or 0.9, of the time. Use the given information to ll in the expected payor, in dollars, foreach cell in the matrix. (Hint: To nd the expected payoff, multiply the probability of winning by the doiiar amount of the payo'. Be sure to account for lawyer costs, which are incurred with certainty if a lawyer is hired.) Management [M] No Lawyer Lawyer NoLawyer L: $ ,M:$ L: $ ,M:$ LabortL} Lawyer L:|$ |,M:|$ I L:|$ |,M:|$ I The Nash equilibrium for this game is for Management to v a lawyer, and for Labor to v a lawyer. Continue without saying .'xc: I ya :9 WI n cl 0'- m: I30 :0 5621155 :0 ac

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