Pippa Plaintiff filed a lawsuit against Dirk Defendant for d…

Pippa Plaintiff filed a lawsuit against Dirk Defendant for defamation. She is demanding $500,000 in damages. About two months before trial, the lawyers for Pippa and Dirk decided to get together to try to negotiate a settlement of the lawsuit. Pippa and her lawyers believe they have a 60% chance of winning $500,000 if the case goes to trial. Dirk and his lawyers believe that Pippa has only a 50% chance of winning $500,000 if the case goes to trial. If the case does not settle, Pippa and Dirk will each have to pay their lawyers $50,000 in attorney’s fees to get the case through trial.   What should Pippa’s reservation price be in the negotiation? Briefly explain your answer.