Use the Following Information to Answer Question

question 52

Multiple Choice

Use the following information to answer question:
Suppose that you are a manager.You are considering whether or not to monitor employees with the payoffs in the following normal form game.
-Management and a labor union are bargaining over how much of a $50 surplus to give to the union.The $50 is divisible up to one cent.The players have one-shot to reach an agreement.Management has the ability to announce what it wants first, and then the labor union can accept or reject the offer.Both players get zero if the total amounts asked for exceed $50.Which of the following is a perfect equilibrium?

• A)Management requests $49.99, and the labor union accepts $0.01.
• B)Management requests $25, and the labor union accepts $25.
• C)Management requests $0, and the labor union accepts $50.
• D)None of the statements associated with this question are correct.

---

Definitions:

Fromm

Erich Fromm was a psychoanalyst and social psychologist who explored the interaction between psychology and society, emphasizing the importance of love, freedom, and non-conformity in human development.

Identity Need

The psychological requirement for a sense of coherence and continuity in one's self-concept, important for mental health and well-being.

Fromm

Erich Fromm, a psychoanalyst and social philosopher, known for his theories on human nature, freedom, and modern society, including the need for belonging and love as central human drives.

Excitation And Stimulation

The processes through which external or internal factors activate physiological or psychological responses, leading to increased alertness, arousal, or activity.