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Posted: April 10th, 2022
Management and a labor union are bargaining – Microeconomics
Management and a labor union are bargaining – Microeconomics
Management and a labor union are bargaining over how a lot of a $50 surplus to offer to the union. The $50 is divisible as much as one cent. The gamers have one shot to achieve an settlement. Management has the power to announce what it desires first, and then the labor union can settle for or reject the supply. Each gamers get zero if the overall quantities requested for exceed $50. Which of the next is true?
A. There are a number of Nash equilibrium.
B. ($25, $25) is a Nash equilibrium.
C. A Nash equilibrium can also be a good equilibrium.
D. There are a number of Nash equilibrium, and ($25, $25) is a Nash equilibrium.
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