Define the Concepts of Internal and External Equity,describing Two Basic

question 16

Essay

Define the concepts of internal and external equity,describing two basic models a company may use,and explain how the objectives of internal and external equity can conflict.

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Definitions:

Dominant Strategy

A strategy in game theory that is the best for a player to follow, regardless of what the opponent does.

Maximin Strategy

A decision-making rule used in uncertain situations, aiming to select the option with the least possible loss or the maximum of the minimum gains.

Dominant Strategy

A strategy that is the best for a player in a game, regardless of the strategies chosen by other players.

Stackable Discounts

The ability to apply multiple discounts in succession to an initial price, cumulatively reducing the final cost.