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Following in the spirit of the labor market game described in Example 16.6, suppose the rm's total revenue function is given by R = 101

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Following in the spirit of the labor market game described in Example 16.6, suppose the rm's total revenue function is given by R = 101 12, and the union's utility is simply a function of the total wage bill: U(w, l) = wl. a. What is the Nash equilibrium wage contract in the two- stage game described in Example 16.6? b. Show that the alternative wage contract w' = 1' = is Pareto superior to the contract identied in part (a). c. Under what conditions would the contract described in part (b) be sustainable as a subgame-perfect equilibrium

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