Refer to the Normal-Form Game of Bargaining Shown Below Suppose That Management and the Union Are Bargaining Over How

question 111

Multiple Choice

Refer to the normal-form game of bargaining shown below. $\begin{array}{l}\quad\quad\quad\quad\quad\quad\text { Management }\\\text { Union }\begin{array}{|l|l|l|l|} \hline & \$ 0 & \$ 250 & \$ 500 \\\hline \$ 0 & (\$ 0, \$ 0) & (\$ 0, \$ 250) & (\$ 0, \$ 500) \\\hline \$ 250 & (\$ 250, \$ 0) & (\$ 250, \$ 250) & (-\$ 10,-\$ 10) \\\hline \$ 500 & (\$ 500, \$ 0) & (-\$ 10,-\$ 10) & (-\$ 10,-\$ 10) \\\hline\end{array}\end{array}$ Suppose that management and the union are bargaining over how much of a $500 surplus to give to the union.It is assumed that the surplus can only be split into $250 increments.Furthermore,negotiations are set up such that management and the union must simultaneously and independently write down the amount of surplus to allocate to the union.The payoff structure to this one-shot bargaining game is listed in Figure 10-16.The number of efficient outcomes resulting from the bargaining game is:

• A) 3.
• B) 5.
• C) 6.
• D) 8.

---

Definitions:

Dots

Small, round marks used in a variety of contexts, including visual presentations, data visualization, and written material for punctuation purposes.

Closure

The psychological phenomenon where an individual seeks a sense of completeness or resolution to an emotional or traumatic event.

Similarity

The cognitive process of recognizing objects or ideas that are alike in appearance or concept.

Texture Gradient

This visual cue indicates depth by the gradual change in appearance of objects as they move further away, with details becoming denser and finer the farther they are from the viewer.