Consider bargaining in which each party increases its outside option by $$10,000.$ Which of the following is a likely result?

$8)$ Bargaining Power $($Part a$)$

Consider bargaining in which each party increases its outside option by $$10,000.$ Which of the following is a likely result?

the chance of a deal increases.

the bargaining split remains the same.

each party$$s share of the bargaining surplus increases by $$10,000.$

each party$$s share of the bargaining surplus increases by $$5,000.$