the following question is for assignment due at 4:00PM. Thank you!

Consider the following payoff structures for a hypothetical one-year contract between ABC Corporation, and the union representing its workers, Local 190. Wages have been determined, so El now the two sides are negotiating over work rules and other details: Mgm; $ Value Local 190 (in millions of $, (in points) Work rules: i-e-$M) WRl. Management maintains full control over work rules $5M 0 WRZ. Management and union negotiate specifics, but management controls implementation of work rules $2M 10 WR3. Employees determine work rules 0 30 Incentive program: IP-l. No incentive / quota plan $4M 0 IP-Z. Quotas set at 80% of current level; additional production paid through incentives 0 50 Layoff and hiring procedures: LHl. Layoffs by seniority and rehire all laidoff workers before hiring new employees $0M 40 LHZ. Full management discretion with respect to layoffs or rehires $3M 0 A. Local 190 and ABC are considering a proposed deal of WRS, IP-l, and LH-2. i) (5 points) What are the payoffs to each party? ii) (8 points) Without changing the wage, is there at least one deal that is superior to the proposed deal for both parties? If so, give one example of such a deal