(See Problem 2

question 20

Multiple Choice

(See Problem 2.) Arthur and Bertha are asked by their boss to vote on a company policy. Each of them will be allowed to vote for one of three possible policies, A, B, and C. Arthur likes A best, B second best, and C least. Bertha likes B best, A second best, and C least. The money value to Arthur of outcome C is $0, outcome B is $1, and outcome A is $4. The money value to Bertha of outcome C is $0, outcome B is $4, and outcome A is $1. The boss likes outcome C best, but if Arthur and Bertha both vote for one of the other outcomes, he will pick the outcome they voted for. If Arthur and Bertha vote for different outcomes, the boss will pick C. Arthur and Bertha know this is the case. They are not allowed to communicate with each other, and each decides to use a mixed strategy in which each randomizes between voting for A or for B. What is the mixed strategy equilibrium for Arthur and Bertha in this game?

• A) Arthur votes for A with probabilityand for B with probability. Bertha votes for A with probabilityand for B with probability.
• B) Arthur and Bertha each votes for A with probabilityand for B with probability.
• C) Arthur votes for A with probabilityand for B with probability. Bertha votes for A with probabilityand for B with probability
• D) Arthur votes for A with probabilityand for B with probability. Bertha votes for A with probabilityand for B with probability..
• E) Arthur votes for A and Bertha votes for B.

Understand the roles and qualifications of different figures in alternative dispute resolution (ADR), such as mediators, arbitrators, and attorneys.

Comprehend the various processes and stages involved in ADR, including mediation, arbitration, mini-trials, and negotiation.

Learn the legislative and statutory framework governing ADR, including international applications and the role of the Federal Arbitration Act.

Understand the principle and application of non-binding and binding arbitration in dispute resolution.

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Definitions:

Depository Institutions

Financial institutions that accept deposits from individuals and provide loans.

Fed Charges

Fees or interest rates set by the Federal Reserve, often in the context of lending to financial institutions.

Board of Governors

The leading body of the Federal Reserve System, overseeing the Federal Reserve Banks and setting monetary policy in the United States.

Appointed

Selected or designated for a position or duty by an authority, rather than by election or competition.