Suppose Andy and Laura are trying to decide whether to work on a project together.
Andy's outside option is 5, and Laura's outside option is 7. If they collaborate on
the project, the utility possibility frontier is denoted by 2 + y = 20.
For each of the following outcomes, explain whether it is possible that this outcome
is the Nash Bargaining Solution. (Say yes or no, and provide your reasoning. You do
not have to solve for the Nash Bargaining Solution.) (1.5 + 1.5 + 1.5 = 4.5 points)
(i) Andy's outcome is 5 and Laura's outcome is 15.
(i) Andy's outcome is 8 and Laura's outcome is 10.
(ili) Andy's outcome is 11 and Laura's outcome is 9.