Indicate for each sentence whether it is true or false. Mark true with a T and false with a F. For each sentence, write a few words of justification.

Suppose that firms A, B, and C have the option to coalize with one of the other firms to exclude the third from the market. That is, the three possible coalitions that can be formed are {A, B}, {A, C}, and {B, C}. Each possible coalition creates a market value that can be shared (although not equally) between the two firms involved. Thus, coalition {A, B} has value 40, {A, C} has value 90, and {B, C} has value 120. a. In the bargaining set, the payoff for A is 20. b. The bargaining set is empty. c. The allocation (15 to A, 25 to B) following coalition {A, B} is blocked by coalition {B, C} with allocation (30 to B, 80 to C). d. It is possible to find a Pareto-efficient allocation. e. If B claims 35 in a coalition with A, then A cannot object that it will be able to claim for a larger value in a coalition with C