Question: A couple engaged in a divorce are fighting over their assets, which are worth $1 milllion. Each has the option of bringing an attorney to

A couple engaged in a divorce are fighting over their assets, which are worth

$1 milllion. Each has the option of bringing an attorney to the settlement

conference. If one part brings an attorney but the other doesn't, then the part

with the attorney gets 75% of the asset and the other part gets 25%. If neither

brings an attorney or both bring an attorney, they split the assets evenly. An

attorney costs $100,000.

(a) Derive the payoff matrix corresponding to this game.

(b) Find the Pareto optimal outcome.

(c) Find the sDSE.

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