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there is a 25% chance that eBay is guilty (g) and a T536 chance that eBay is irmocent {i}. Let's also suppose that eBay has

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there is a 25% chance that eBay is guilty (g) and a T536 chance that eBay is irmocent {i}. Let's also suppose that eBay has two possible actions: a generous settlement offer (G) of $200 million or a stingy settlement offer (S)- of $20 million. If eBay offers a generous settlement, assume that AT&T will accept, thus avoiding a costly trial. If eBay oas a stingy settlement, then AT&T must decide whether to accept (A) and avoid a trial, or reject and take the case to court (C). In the trial, if eBay is guilty it must pay AT&T $300 million in addition to paying all the court costs. If eBay is found innocent it will pay AT'cT nothing, and AT&T will pay all the court costs. a. Write down the extensive-form game tree for this game. Be carell about information sets. h. 'Nhich of the two players has an incentive to bluff in this game? What would blufng consist of? Explain your reasoning. c. Write down the strategic-tom game matrix for this game. Find all of the Nash equilibria to this game. 'What are the expected payoffs to each player in equilibrium

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