Discussion questions
Week five:
In Chapter 15 Strategic Games, we have learned that a player chooses a strategy that is the best response to the rivalâs strategy in Nash equilibrium and receives payoffs. Please answer questions (a) and (b) after reading Application.
Application: Consider that you are an executive in charge of human resource issues at General Dynamics. Suppose a UAW (https://uaw.org/) labor contract with General Dynamics is being renegotiated. Some of the many issues on the table include job security, health benefits, and wages. Would you be better off (i) letting the union bear the expense of crafting a document summarizing its desired compensation, or (ii) making the union a take-it-or-leave-it offer?
Questions:
(a) Find two players and your two strategies
(b) Explain your preferred strategy between (i) and (ii) by using âpayoffsâ
Hint: The application does not show any numerical values of payoffs. You can explain what your payoff means (e.g., higher utility, saving time, profits etc.) and why your chosen strategy gives you higher payoff.
Discussion questions
Week five:
In Chapter 15 Strategic Games, we have learned that a player chooses a strategy that is the best response to the rivalâs strategy in Nash equilibrium and receives payoffs. Please answer questions (a) and (b) after reading Application.
Application: Consider that you are an executive in charge of human resource issues at General Dynamics. Suppose a UAW (https://uaw.org/) labor contract with General Dynamics is being renegotiated. Some of the many issues on the table include job security, health benefits, and wages. Would you be better off (i) letting the union bear the expense of crafting a document summarizing its desired compensation, or (ii) making the union a take-it-or-leave-it offer?
Questions:
(a) Find two players and your two strategies
(b) Explain your preferred strategy between (i) and (ii) by using âpayoffsâ
Hint: The application does not show any numerical values of payoffs. You can explain what your payoff means (e.g., higher utility, saving time, profits etc.) and why your chosen strategy gives you higher payoff.
