Do the ability to move first give the employer an advantage

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The following represents the potential outcomes of your first salary negotiation after graduation:

Assuming this is a sequential move game with the employer moving first, indicate most likely outcome. Does the ability to move first give the employer an advantage? If so, how? As the employee, is there anything you could do to realize a higher payoff?


                         Employer
             Low Salary Offer                  High Salary Offer
Employee Walks   Employee Accepts   Employee Walks Employee Accepts
Employer gets 0   Employer gets 100   Employer gets 0 Employer gets 75
Employee gets 0   Employee Gets 75   Employee gets 0 Employee Gets 100

Reference no: EM13184835

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