Question: 2. (30 Points) There is a shipbuilder and a sher. The sher needs a spe cialized boat to maximize his catch. With a normal boat


2. (30 Points) There is a shipbuilder and a sher. The sher needs a spe cialized boat to maximize his catch. With a normal boat he can make $150 but with the specialized boat he can make $300. Normal boats can be bought or sold on the open market for $100 While a specialized boat cannot be sold on the market. Making either boat costs $50. The sher only has time to make one boat. EX antebefore the specialized boat was made A) Find the outside option prot for both rms B) Find the Nash Bargaining Prot for each rm Ex postthe specialized boat has already been made C) Find the outside option prot for both rms B) Find the Nash Bargaining Prot for each rm
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