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Suppose that Cam Newton is negotiating a contract with the Los Angeles Chargers. Cam has an offer from the New England Patriots for $10 million

Suppose that Cam Newton is negotiating a contract with the Los Angeles Chargers. Cam has an offer from the New England Patriots for $10 million a year. If he signs with the Chargers, they will earn $40 in revenue from the signing. The Chargers next best option is to sign Jameis Winston. They would earn $30 from signing Winston and would pay him a contract of $10 million. Unless otherwise noted, your answers should be in the same units as the problem specifies (millions). 1. If Newton's bargaining power is w = 0.8, what is the negotiated salary under Nash Bargaining ? 2. If the Chargers only have 16 million dollars in salary cap space, what is the highest value of w (Newton's bargaining power) such that the Chargers can sign him?

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