b. What is the Nash equilibrium of the game?
Nash equilibrium would be met if both parties higher lawyers or if neither side highers a
c. Would the sides want to ban lawyers?
Yes, both sides would want to ban lawyers because both parties would have greater profit
from the result.
16-2 Airline Merger
American Airlines and British Airways are proposing to merge. If different unions represent British
pilots and American pilots how would this merger affect airline costs?
16-3 House Closing
ve entered into a contract to purchase a new house, and the closing is scheduled for next week.
s typical for some last-minute bargaining to occur at the closing table, where sellers often try to
tack on extra fees. You have three options for the closing: (1) attend yourself, (2) send an attorney
authorized to close only per the previously negotiated terms, or (3) pre-sign all the closing
documents per the current terms and not attend the closing. Which of these would be most
advantageous from a bargaining position?