1.15 Lori employs Max. She wants him to work hard rather than to loaf. She considers offering...

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1.15 Lori employs Max. She wants him to work hard rather than to loaf. She considers offering him a bonus or not giving him one. All else the same, Max prefers to loaf.

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If they choose actions simultaneously, what are their strategies? Why does this game have a different type of equilibrium than the game in Solved Problem 14.1? A

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Microeconomics

ISBN: 9780133456912

7th Edition

Authors: Jeffrey M. Perloff

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