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Management and a labor union are bargaining over how much of a $50 surplus to give to the union. The $50 is divisible up to one cent. The players have one-shot to reach an agreement. Management has the ability to announce what it wants first, and then the labor union can accept or reject the offer. Both players get zero if the total amounts asked for exceed $50. Which of the following is most correct and justify?
A. There are multiple Nash equilibria.
B. ($25, $25) is a Nash equilibrium.
C. A Nash equilibrium is also a perfect equilibrium.
D. There are multiple Nash equilibria and ($25, $25) is a Nash equilibrium.
Do you favor a laissez-faire approach or government intervention and regulation with respect to monopoly What are the benefits of your favored approach, in terms of economic efficiency Is one approach always preferable, or should each monopoly mar..
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Two suspects are arrested and charged with a crime. The police lack sufficient evidence to convict the suspects, unless at least one confesses. The police hold the suspects in separate cells and explain the consequences that will follow from the a..
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