Assume thisis a sequential game. If emplover A offers a low salary, you, as the employee, are best served by offer. In this case, you would earn a payoff of and employerA would earn a payoff of...

Extracted text: Assume thisis a sequential game. If emplover A offers a low salary, you, as the employee, are best served by offer. In this case, you would earn a payoff of and employerA would earn a payoff of Alternatively, if employer A offers a high salary, you are best served by case, you would eam a payoff of , and employer A would earn a payoff of .With this information, employerA will choose to make a v offer, since it will yteld a higher payoff for him, based on what you (the employee) will subsequently choose. Suppose you have a competing job offer from employer B. Accepting this job offer gives a payoff of 58.5. During your negotiations with employee A you have the option of taking this offer from employer B, and employer A is aware of this offer (as well as the payoff to you). Given this competing offer, the negotiation with employer A is depicted in the following hgure: Employee Accept O Employee: 115 Employer A 78 Employee Reject O Empiover A 0 Employee: 58.5 Employee Accept Employee: 78 Employer A 115 Employee Reect O Employee: 56.5 Employer A0


Extracted text: After graduation, you enter salary negotiatons for your first job. Suppose the potential employer (employer A) has two cholces: to offer you a high salary or to offer you a low salary. You may then accept or reject whatever offer is made. The payoffs, as well as the decision tree, are depicted in the following figure. Employee Accept Employee: 115 Employer A: 78 Employee Reject Employee: 0 Employer A: 0 High Offer Employee Accept Employee: 78 Employer A: 115 Employer Low Offer Employee Reject Employee: 0 Employer A: 0