Consider an Example of the Prisoner's Dilemma Where 2 Firms

question 37

Multiple Choice

Consider an example of the prisoner's dilemma where 2 firms are making sealed bids on a contract and each firm is allowed to bid either $100 or $180. If both firms bid the same price, the job is shared equally and each firm earns half the value of its bid. Otherwise the lowest bidder wins the contract and receives the full value of its bid (and the other bidder earns zero) . The
Non- cooperative outcome in this situation is

• A) one firm bids $100, the other firm bids $180.
• B) both firms bid $90.
• C) both firms bid $100.
• D) both firms bid $180.
• E) both firms bid $50.

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Definitions:

Job Analysis

The process of studying and gathering information about the content and the human requirements of jobs, as well as the context in which jobs are performed.

Job Facets

The various aspects or dimensions of a job that can impact an employee’s satisfaction and performance, like task variety, autonomy, and feedback.

Job Supervision

The act of overseeing and directing the work and tasks of employees to ensure organizational goals are achieved.

Job Specification

A detailed description of the duties, responsibilities, required qualifications, and reporting relationships of a particular job.