A buyer and a seller are bargaining over the sale of an object. The buyer knows that the seller values the object $0 with a probability of 0.25 and he values it $4 with a probability of 0.75. The seller knows that the buyer values the object either $1 or $5, each with a probability of 1/2. The table below shows what happens in each contingency   Seller's value is $0 Seller's value is $4 Buyer's value is $1 Trade price is $1 NO TRADE Buyer's value is $5 Trade price is $p Trade price is $4 Find the interval for p such that The buyer with a valuation of $5 is not better-off reporting $1 The seller with a valuation of $0 is not better-off reporting $4. In blank 1 enter the lower value. In blank 2 enter the upper value.

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