Question: Please help with (1.B.ii) (1.B) Let the new underlying game be given by the following strategic form representation: Firm B Invest (I) Not Invest (N)

Please help with (1.B.ii) (1.B) Let the new underlying game be

Please help with (1.B.ii)

(1.B) Let the new underlying game be given by the following strategic form representation: Firm B Invest (I) Not Invest (N) Firm A ZI, Z2 Y1, X2 Invest (1) (20, 23) (-16, 32) X1, Y2 (24, Not Invest (N) -14) (0, 0) (1.B.i) Write out the resulting payoffs associated with the induced game under the assumption that the court imposes expectation damages. Can a contract specifying (I, I) be enforced? Why or why not? Explain. (5 points) Firm B Invest (1) Not Invest (N) Firm A Invest (I) Not Invest (N) (1.B.ii) Write out the payoffs associated with the induced game under the assumption that the court imposes reliance damages. Can a contract specifying (I, I) be enforced? (4 points) Firm B Invest (I) Not Invest (N) Firm A Invest (1) Not Invest (N)

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