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Please help with (1.B.ii) (1.B) Let the new underlying game be given by the following strategic form representation: Firm B Invest (I) Not Invest (N)

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Please help with (1.B.ii)

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(1.B) Let the new underlying game be given by the following strategic form representation: Firm B Invest (I) Not Invest (N) Firm A ZI, Z2 Y1, X2 Invest (1) (20, 23) (-16, 32) X1, Y2 (24, Not Invest (N) -14) (0, 0) (1.B.i) Write out the resulting payoffs associated with the induced game under the assumption that the court imposes expectation damages. Can a contract specifying (I, I) be enforced? Why or why not? Explain. (5 points) Firm B Invest (1) Not Invest (N) Firm A Invest (I) Not Invest (N) (1.B.ii) Write out the payoffs associated with the induced game under the assumption that the court imposes reliance damages. Can a contract specifying (I, I) be enforced? (4 points) Firm B Invest (I) Not Invest (N) Firm A Invest (1) Not Invest (N)

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