Question
The Tea Kettle Arthur alleges that Betty borrowed a valuable kettle and broke it, so he sues to recover its value which is $800. The
"The Tea Kettle"
Arthur alleges that Betty borrowed a valuable kettle and broke it, so he sues to recover its value which is $800. The facts are very confusing, and since it is unclear whether the courts will rule in favor of Arthur or Betty, they both believe that their chances of winning in court are an even 50%. If Arthur wins in court, Betty must pay $800 to Arthur, the value of the kettle. If Betty wins in court, she does not have to pay anything to Arthur. However, going to small claims court costs each party $100. Assume that Betty has $900 total cash.
In the cooperative outcome, Arthur's cooperative value is _______________, and Betty's cooperative value is _______________.
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