Management and a Labor Union Are Bargaining Over How Much

question 92

Multiple Choice

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 Nash equilibrium?

• A) Management requests $50 and the labor union accepts $0.
• B) Management requests $35 and the labor union accepts $10.
• C) Management requests $20 and the labor union accepts $20.
• D) Management requests $25 and the labor union accepts $10.

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Definitions:

In Vivo Exposure

A therapeutic technique involving direct exposure to a feared object, situation, or activity in real-life conditions.

Flooding

A psychological therapy technique aimed at helping people confront fears directly by exposure to anxiety-provoking stimuli until the stimuli no longer induce anxiety.

Imaginal Exposure

A therapeutic technique that involves repeatedly reliving the traumatic experience in one's imagination to reduce the power it holds.

In Vivo

A term used in therapy to describe treatments or interventions conducted in the client's natural environment.