Potential outcomes of first salary negotiation

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The below figure represents the potential outcomes of your first salary negotiation after graduation.

Assuming this is a sequential-move game with the employer moving first, indicate the 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 Employee gets 100

Employee gets 0 Employee gets 75 Employee gets 0 Employer gets 75

Reference no: EM132124831

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