6 Safari File Edit View History Bookmarks Window Help A Fri Jul 23 6:42 PM ng.cengage.com MindTap - Cengage Learning Problems: Chapters 15 and 16 Courses Back to Assignment Catalog and Study Tools Attempts 0 I .2. I AverageO/ 2 Rental Options 4 . Individual Problems 15-5 College Success Tips , , , , Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator, who chooses the best proposal Career Success Tips (effectively giving one side or the other $5 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of $300,000) who is effective at preparing the proposal in the best light. If neither hires a lawyer or if both hire lawyers, each side can expect to win about half the time. If Help only one side hires a lawyer, it can expect to win three fourth, or 0.75, of the time Give Feedback Use the given information to fill in the expected payoff, in dollars, for each cell in the matrix. (Hint: To nd the expected payoff, multiply the probability of winning by the dollar amount of the payoff. Be sure to account for lawyer costs, which are incurred with certainty if a lawyer is hired.) Management (M) No Lawyer L: S .M: 3 L: $ ,M: $ Labor (L) Lawyer L: :5 ,M: s L: s ,M: $ The Nash equilibrium for this game is for Management to V a lawyer, and for Labor to V a lawyer. Continue without saving