Two hospitals are bargaining with an MCO to get into its provider network. The MCO can earn $100 if it puts one of the hospitals in its network; and $200 if it puts both hospitals in its network. If both hospitals merge, and bargain jointly, how much more will they earn?
a. $0
b. $50
c. $100
d. It depends on the ability of the merged hospital to credibly commit to a takeit-or-leave-it offer.