Suppose That You Are a Manager Management and a Labor Union Are Bargaining Over How Much

question 79

Multiple Choice

Suppose that you are a manager.You are considering whether or not to monitor employees with the payoffs in the normal-form game shown below. $\begin{array}{c}\text { Worker }\\\text { Manager}\begin{array}{|l|l|l|} \hline & \text { Work } & \text { Shirk } \\\hline & & \\\text { Monitor } & -1,1 & 1,-1 \\\hline \text { Don't } \\\text { Monitor }& 1,-1 & -1,1\\\hline\end{array}\end{array}$ 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 true?

• A) There are multiple Nash equilibria.
• B) ($25, $25) is a Nash equilibrium.
• C) A Nash equilibrium is also a perfect equilibrium.
• D) There are multiple Nash equilibria, and ($25, $25) is a Nash equilibrium.

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Definitions:

Superego

In psychoanalytic theory, it represents the moral component of the personality, internalizing the values and norms of society.

Locomotor-genital Stage

Not a recognized stage in standard psychological theories. It may be a confusion with stages from Freudian or Eriksonian theories.

Final Stage

The last phase in a process or lifecycle, often resulting in a conclusive or terminal outcome.

Maturity And Old Age

The later stages of life characterized by the completion of physical growth and the accumulation of life experiences, often associated with increased wisdom and adjustment to life's challenges.