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:

Y Output

A designation for an output point or terminal in PLCs and control systems, commonly used to control actuators and other output devices.

Energized

Referring to a state where an electrical component or circuit has power supplied to it and is operational.

Series Path

A series path refers to an electrical circuit configuration where components are arranged in a sequence, one after another, allowing current to flow through one component to the next.

Parallel Path

A concept in electronics and computing where multiple pathways allow for concurrent processing or transmission of signals or data, enhancing speed and efficiency.