After graduation, you enter salary negotiations for your rst 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 gure. Employee Accept Employee: 101 Employer A: 52 Employee Reject Employee: 0 Employer A: 0 Employee Accept Employee: 52 Employer A. 101 Employee Reject Employee: 0 Employer A. O Assume this is a sequential game. If employer A offers a low salary, you, as the employee, are best served by accepting * the offer. In this case, you would earn a payoff of 52 , and employer A would earn a payoff of 101 \\ . Alternatively, if employer A offers a high salary, you are best served by accepting the offer. In this case, you would earn a payoff of 101 \\ , and employer A would earn a payoff of 52 \\ . With this information, employer A will choose to make a high _ offer, since it will yield a higher payoff for him, based on what you (the employee) will subsequently choose. Suppose you have a competing job offer from employer B. Accepting this job offer gives a payoff of 39. During your negotiations with employee A, you have the option of taking this offer from employer B, and employer A is aware of this offer (as well as the payoff to you). Given this competing offer, the negotiation with employer A is depicted in the following figure: Employee Accept Employee: 101 Employer A: 52 High Offer Employee Reject Employer A: 0 Employee: 39 Employer Employee Accept Employee: 52 Employer A: 101 Low Offer Employee Reject Employee: 39 Employer A: 0 True or False: With this competing job offer, your threat to reject employer A's offer, if it is low, is now credible. O False O True