Question: A publishing house ( Party A ) values the rights to a best - selling author s manuscript at $ 5 0 0 , while

A publishing house (Party A) values the rights to a best-selling authors manuscript at $500, while the author (Party B) values it at $400. If they agree to split the surplus equally, what will the agreed-upon price for the manuscript rights be? Discuss how surplus sharing influences negotiation outcomes in the publishing industry and its implications for value creation and fairness.

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