Suppose that Bob is ambiguity averse, and evaluates expected utility for a set of prior probability distributions and acts to maximize the minimum of expected utility over these priors (Gilboa and Schmeidler (1989)). Consider an independence day show which needs not hold due to a pandemic (eg. COVID 19). Suppose there are only three possible scenarios on independence day State Description A The pandemic is completely gone B The pandemic is half-gone and people wear masks to the show and keep social-distancing C The pandemic is still on re and the show is cancelled with a refund of $10 Suppose Bob does not have a ticket to the show. If Bob has a ticket, he gets 200 utils if state A realizes; gets 50 utils if state B realizes; and gets 10 utils if state C realizes. Assume Frank is a expected utility maximizer who has a ticket to the show and gets the same utility as Bob from the show. Yet, they holds different priors as in the table below: l A B c p 1/2 1/4 1/4 p' 1/50 9/50 4/5 q 4'61 4b (10763le The set of Bob's prior is {p, p'}. Frank's prior is q. Suppose both of them have linear utility in wealth (i.e. u(x) = x). a) What is the highest price Bob would be willing to pay for this ticket? b) Suppose Frank would sell the ticket at Own lowest price. Under what conditions on q\