Diagram the equilibrium, A worker faces a review every

Diagram the equilibrium

Reference no: EM1372839

A worker faces a review every year. He prefers to spend time making if he will be reviewed; otherwise he would prefer to use time somewhere else. The reveiwer prefers to review when the employee is unprepared. If the players match their actions (employee prepares and the reviewer reviews, or the employe doesn't prepare and the reviewer does not review), the employee wins with a payoff of 35 and the review loses with a payoff of -35. If the actions don't match, the reviewer wins with a payoff of 35 and the employee loses with a payoff of -35. Diagram this game and comment on the equilibrium.

Reference no: EM1372839

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