15-4 Salary Negotiation

The below figure represents the potential outcomes of your first salary negotiation after graduation.

Assuming this is a sequential-move game with the employer moving first, indicate the 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?

Froeb, L. M., McCann, B. T., & Ward, M. R. (2016). Managerial economics: A problem solving approach (4 ed.). Boston,MA: Cengage Learning.