What is the likely bargaining outcome if Kaiser tells each hospital group that theyre going to reach an agreement with the other hospital group?

Kaiser Permenente Healthcare is negotiating with two hospital groups for inclusion in its network. S Show more Kaiser Permenente Healthcare is negotiating with two hospital groups for inclusion in its network. Suppose that the value or surplus created by including one hospital group is $80 million while the value of including both hospital groups is $120 million. Part 1: What is the likely bargaining outcome if Kaiser tells each hospital group that theyre going to reach an agreement with the other hospital group? Part 2: Suppose that the two hospital groups merge. What is the likely post-merger bargaining outcome? Part 3: How much is the merger worth to each hospital group? Show less

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