Suppose That You Are a Manager Which of the Following Pairs of Strategies Constitutes a Nash

question 91

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. $\begin{array}{c}\text { Worker }\\\text { Manager}\begin{array}{|l|l|l|} \hline & \text { Work } & \text { Shirk } \\\hline & & \\\text { Monitor } & -1,1 & 1,-1 \\\hline \text { Don't } \\\text { Monitor }& 1,-1 & -1,1\\\hline\end{array}\end{array}$ Which of the following pairs of strategies constitutes a Nash equilibrium?

• A) Manager monitors and worker works.
• B) Manager does not monitor and worker works.
• C) Manager monitors and worker shirks.
• D) None of the preceding answers is correct.

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Definitions:

Pleasure Principle

In psychoanalytic theory, the instinctual seeking of pleasure and avoidance of pain to satisfy biological and psychological needs.

Ego

In psychoanalytic theory, the part of the personality that mediates demands between the id, superego, and reality; operates on the reality principle.

Oral Stage

A phase in Freudian psychosexual development where an infant's pleasure centers are in the mouth, leading to behaviors like sucking and biting.

Freud

Refers to Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.