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After graduation, you enter salary negotiations for your first job. Suppose the potential employer (employer A) has two choices: to offer you a high salary

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

image text in transcribedimage text in transcribed
Employee Accept Employee: 90 Employer A: 75 High Offer Employee Reject Employee: 0 Employer A: 0 Employe Employee Accept Employee: 75 Employer A: 90 Low Offer Employee Reject Employee: 0 Employer A: 0? Employee Accept Employee: 90 Employer A: 75 High Offer Employee Reject Employer A: 0 Employee: 82.5 Employer Employee Accept Employee: 75 Employer A: 90 Low Offer Employee Reject Employee: 82.5 Employer A: 0 False: With this competing job offer, your threat to reject employer A's offer, if it is low, is n True False

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