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The following represents the potential outcomes of your first salary negotiation after graduation: Assuming this is a sequential move game with the employer moving first,

The following represents the potential outcomes of your first salary negotiation after graduation:

Assuming this is a sequential move game with the employer moving first, indicate most likely outcome. Does the ability to move first give the employer an advantage?If so, how? As the employee, is there anything you could do to realize a higher payoff?



Employer



Low Salary Offer


High Salary Offer

Employee Walks

Employee Accepts


Employee Walks

Employee Accepts

Employer gets 0

Employer gets 100


Employer gets 0

Employer gets 100

Employee gets 0

Employee Gets 75


Employee gets 0

Employee Gets 75

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