Reference no: EM131251551
Suppose the president of the local teachers' union bargains with the superintendent of schools over teachers' salaries. Assume the salary is a number between 0 and 1, 1 being the teachers' preferred amount and 0 being the superintendent's preferred amount.
(a) Model this bargaining problem by using a simple ultimatum game. The superintendent picks a number x, between 0 and 1, which we interpret as his offer. After observing this offer, the president of the union says "yes" or "no." If she says "yes," then an agreement is reached; in this case, the superintendent (and the administration that she represents) receives 1 - x and the president (and the union) receives x. If the president says "no," then both parties receive 0. Using the concept of backward induction, what would you predict in this game?
(b) Let us enrich the model. Suppose that before the negotiation takes place, the president of the union meets with the teachers and promises to hold out for an agreement of at least a salary of z. Suppose also that both the superintendent and the president of the union understand that the president will be fired as union leader if she accepts an offer x.
(c) Given your answer to part (b), what is the outcome of the game? (What is the superintendent's offer and what is the president's response?) Comment on how the union's final salary depends on y.
(d) Given your answer to part (b), what kind of promise should the president make?
|
Use the standard bargaining solution to predict the outcome
: Use the standard bargaining solution to predict the outcome under the assumption that the parties have equal bargaining weights.
|
|
Probability of finding five left-handers
: Problem: The probability that an individual is left-handed is 0.11. In a class of 29 students, what is the probability of finding five left-handers?
|
|
What according to powell is the role of a leader
: In the many leadership roles Powell occupied, what according to Powell is the role of a leader? How does the individual who is serving as a leader go about seeing that the needs of the organization are met?
|
|
Draw the directed graph of relation
: Given the set A = {1, 2, 3} and the set S = {(x, y) | x and y in A}. Consider the relation ≤ defined on S as follows: ((x1, y1) ≤ (x2, y2) if x1 ≤ x2 and y1 ≤ y2. Draw the directed graph of this relation. Show that it is a partial order. Explain why ..
|
|
What is the outcome of the game
: What is the outcome of the game? - What is the superintendent's offer and what is the president's response?- Comment on how the union's final salary depends on y.
|
|
How and why did the soviet union collapse
: Why did it take Germany so long to unify, and how did that delay affect German behavior once it did come together under Prussia? Why did Germany's first attempt at democracy give way to Hitler (1889 - 1945) and his Nazi regime, which was responsibl..
|
|
What type of design did the experimenters use
: A 16-run experiment was performed in a semiconductor manufacturing plant to study the effects of six factors on the curvature or camber of the substrate devices produced. The six variables and their levels are shown in Table P8.2.
|
|
What you think are the most important communication issues
: Discuss whether communication will become more complex, or less complex, and why - Address what role technology will play in the communication of thoughts and ideas.
|
|
Poisson approximation to binomial find probability
: Leaks occur in a pipeline at a mean rate of 4 leaks per 1,000 meters. In a 2,500-meter section of pipe, (a) Using the Poisson approximation to the binomial find the probability of no leaks? (Round your answer to 6 decimal places.)
|