After graduation, the graduate enters salary negotiations for a first job. Suppose the potential employer (employer A) has two choices: to offer the graduate a high salary or to offer the graduate a low salary. The graduate may then accept or reject whatever offer is made. The payoffs, as well as the decision tree, are depicted in the following figure.

Employee Accept Employee: 120 Employer A: 71 High Offer Employee Reject Employee: 0 Employer A: 0 Employer Employee Accept Employee: 71 Employer A: 120 Low Offer Employee Reject Employee: 0 Employer A: 0Employee Accept Employee: 120 Employer A: 71 High Offer Employee Reject Employer A: 0 Employee: 53.25 Employer Employee Accept Employee: 71 Employer A: 120 Low Offer Employee Reject Employee: 53.25 Employer A: 0