1.3. In his path-breaking book Managerial Dilemmas, political scientist Gary Miller says that a good corporate culture is one that gets workers to work together even when they face prisoner's dilemmas (we discussed the prisoner's dilemma in detail in Chapter 15). In a healthy corporate culture, you feel guilty if you're being lazy while your buddy is working. Let's sum up

"guilt" as simply as possible: It's some number

"X" that represents how you feel. These figures are adapted from Figure 15.4.

Stan Work Work Kyle Shirk

(4, 4)

(X, 2)

Shirk

(2, X)

(3, 3)

a. What does X have to be in order to keep this from being a prisoner's dilemma?

Answer with a range (e.g., greater than 12.5, less than -2).

b. Now, there are two Nash equilibria in this problem. What are they? Using the language of Chapter 15 and 16, what kind of game has this just become?

c. There's an idea buried in the questions from Chapter 16 that will "point" Stan and Kyle toward the best possible outcome. What is it? (Keep in mind that a good corporate cul ture can help with this part, too.)