The reason we study the non-strategic sequential labor negotiation game:
A)Is to show that these games usually go on for many rounds
B)Is to show the importance of the first mover being able to commit to an offer
C)Is to show the importance of the second mover being able to commit to an offer
D)Is to show the irrelevance of mover position,given that he is able to commit to a position

Question

​The reason we study the non-strategic sequential labor negotiation game:
A)​Is to show that these games usually go on for many rounds
B)Is to show the importance of the first mover being able to commit to an offer
C)Is to show the importance of the second mover being able to commit to an offer
D)​Is to show the irrelevance of mover position,given that he is able to commit to a position

Quizplus · Accepted Answer

The non-strategic sequential labor negotiation game is a game in which the first mover makes an offer, and the second mover can either accept or reject the offer. If the second mover accepts the offer, the game ends. If the second mover rejects the offer, the first mover can either make a new offer or withdraw the offer. The game continues until either the second mover accepts an offer or the first mover withdraws the offer.The reason we study the non-strategic sequential labor negotiation game is to show the irrelevance of mover position, given that he is able to commit to a position. This is because the first mover can always make an offer that the second mover will accept, and the second mover can always reject an offer that the first mover will not accept. Therefore, the outcome of the game is independent of who moves first.

​The Reason We Study the Non-Strategic Sequential Labor Negotiation Game

The Reason We Study the Non-Strategic Sequential Labor Negotiation Game