1. The USFL must decide whether to play in the fall or in the spring.The NFL may choose to continue to play in the fall or to switch seasons.Suppose that there is a TV audience of 100 million people who will watch football on TV in the fall and an audience of 50 million in the spring.If a league has a monopoly in a season, it gets the entire market.If the two leagues compete head-to-head, the NFL gets a 70% share and the USFL gets a 30% share (the NFL has a better brand name).

a)Carefully lay out a normal form representation of this game and solve it.What is the Nash equilibrium?

b)The USFL actually chose to play a fall schedule.Suppose that the fall audience is known to be 100 million, but the spring audience size is unknown.If the choice of a fall schedule is 'individually rational', what is the USFL's maximum estimate of the spring audience size?