Anjay is selling his coffee company, and there are two potential buyers, Bert and Cecilia. Bert values the business at $40,000 while Cecilia values it at $50,000. Anjay is willing to sell for any amount over $20,000. All of these facts are known to all of the parties. If Bert has taken this course, how much do you expect Bert will make?
$0
$5,000
$10,000
$15,000
$20,000
If Bert has taken this course, he will ask to get paid to play. Without Bert in the picture, we expect the price to be halfway between $20,000 and $50,000, or $35,000. With Bert in the picture, we expect the price to be halfway between $40,000 and $50,000, or $45,000. Thus Bert helps Anjay get an additional $10,000. He should get half of that, or $5,000.
