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William Owns a Car That He Values at $3000

question 6

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William owns a car that he values at $3000.Jackson values the car at $5000.The negotiations between them for a potential trade are as follows: William offers a price to Jackson.If Jackson accepts, trade takes place at that price.If Jackson rejects no trade takes place.William keeps the car and Jackson gets a payoff of $0.Given the equilibrium outcome of the negotiations, what are the realized gains from trade?


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