b. Given that firms know what will happen in stage 3, what wage will they offer to
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b. Given that firms know what will happen in stage 3, what wage will they offer to each of the two types in the simultaneous move game of stage 2 (assuming that they best respond to one another)?
(Hint: Ask yourself if the two employers could offer two different wages to the same worker type, and, if not, how competition between them impacts the wage that they will offer in equilibrium.)
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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