Question: I need some help with these problems, thank you so much! If ExxonMobil invests in Venezuela's oil fields, it runs the risk that Venezuela will

I need some help with these problems, thank you so much!

If ExxonMobil invests in Venezuela's oil fields, it runs the risk that Venezuela will later partially nationalize the assets. The payoffs are represented in the game tree illustrated in the figure to the right. Nationalize Suppose that the parties could initially agree to a binding contract that Venezuela (8,32) would pay ExxonMobil x dollars if it nationalizes the oil fields. How large does x have to be for ExxonMobil to invest in Venezuela? Venezuela Governmen The value of x would have to be at least equal to $ for ExxonMobil to invest in (20,20) Don't nationalize Venezuela. (Enter your response as a whole number.) ExxonMobil Elsewhere (10,0)

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