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a ) Individual problems : 15-4 and 15-5 .
Individual problem 15-4 : The following represents the potential outcomes of your first salary negotiation after graduation : Assuming this is sequential move game with the employer moving first , indicate the most likely outcome . Does the ability to move first give the employer an advantage ? If so , how ? As the employee , is there anything you could do to realize a higher payoff ?
Individual problem 15-5 : Every year , management and labor renegotiate a new employment contract by sending the proposals to an arbitrator who chooses the best proposal ( effectively giving one side or the other $ 1 million ). Each side can choose to hire , or not hire , an expensive labor lawyer ( at the cost of $ 200,000 ) who is effective at preparing the proposal in the best light . If neither hires lawyers or if both hire lawyers , each side can expect to with about half of the time . If only one side hires a lawyer , it can expect to win three-quarters of the time .
a ) Diagram this simultaneous move game b ) What is the Nash Equilibrium of the game ? c ) Would the sides want to ban lawyers ? ============================================ BUSI 620 Week 6 Discussion Board 6
a ) Individual problems : 15-4 and 15-5 .
Individual problem 15-4 : The following represents the potential outcomes of your first salary negotiation after graduation : Assuming this is sequential move game with the employer moving first , indicate the most likely outcome . Does the ability to move first give the employer an advantage ? If so , how ? As the employee , is there anything you could do to realize a higher payoff ?
Individual problem 15-5 : Every year , management and labor renegotiate a new employment contract by sending the proposals to an arbitrator who chooses the best proposal ( effectively giving one side or the other $ 1 million ). Each side can choose to hire , or not hire , an expensive labor lawyer ( at the cost of $ 200,000 ) who is effective at preparing the proposal in the best light . If neither hires lawyers or if both hire lawyers , each side can expect to with about half of the time . If only one side hires a lawyer , it can expect to win three-quarters of the time .
a ) Diagram this simultaneous move game b ) What is the Nash Equilibrium of the game ? c ) Would the sides want to ban lawyers ? ============================================ BUSI 620 Week 6 Discussion Board 6