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Brandts and Cooper, in Their Studies of the Corporate Turnaround

Question 13

Multiple Choice

Brandts and Cooper, in their studies of the Corporate Turnaround Game, report that:


A) The degree of coordination success depends crucially on the amount of performance bonus for coordination; the larger the bonus the greater the coordination success.
B) The degree of coordination success depends on the payment of a performance bonus for coordination; but the actual magnitude of the bonus is immaterial. A small bonus has the same impact on coordination success as a large one.
C) Even the payment of a performance bonus does not manage to get all workers to consistently choose that strategy that leads to the payoff dominant equilibrium.
D) Once provided the explicit context of turning around a struggling company, workers easily coordinate to the payoff dominant equilibrium and there is no need for a performance bonus to improve coordination.

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