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:

Subjective Systems

Tools or methods that rely on personal feelings, tastes, or opinions for assessment or decision-making.

Continuum Models

Theoretical models that describe certain properties or behaviors as occurring on a continuous scale, rather than being divided into distinct categories.

Structured Interview

Meeting between a clinician and a client or a client’s associate(s) in which the clinician asks questions that are standardized and are usually designed to determine whether a diagnosis is warranted.

Behavioral Observation

Method for assessing the frequency of a client’s behaviors and the specific situations in which they occur.