Asked by Keshawn Johnson on Jul 09, 2024
Verified
In the simultaneous move labor negotiation game:
A) The payoffs are always higher if you accommodate
B) The payoffs are always higher if you bargain hard
C) The payoffs from accommodating are only higher if your opponent bargains hard
D) The payoffs from accommodating are only higher if your opponent accommodates
Labor Negotiation Game
A strategic interaction between employers and employees (or their representatives) aiming to agree on terms of employment, such as wages and working conditions.
Payoffs
The rewards or returns, often in terms of profit or benefit, resulting from a particular action or investment.
Accommodate
To make fit, suitable, or congruous; to provide with something desired, needed, or suited.
- Master the primary principles of game theory relevant to bargaining and negotiations.
- Explore the outcomes associated with participating in games concurrently as opposed to sequentially in negotiation settings.
Verified Answer
LO
Lindsey O'LearyJul 14, 2024
Final Answer :
C
Explanation :
In the simultaneous move labor negotiation game, if both parties accommodate, they both receive a higher payoff compared to if both parties bargain hard. However, if one party accommodates and the other bargains hard, the party that accommodates receives a higher payoff. Therefore, the best choice is to accommodate only if the opponent is bargaining hard.
Learning Objectives
- Master the primary principles of game theory relevant to bargaining and negotiations.
- Explore the outcomes associated with participating in games concurrently as opposed to sequentially in negotiation settings.