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hello dear, please help me this question in game theory with explanation, thank you so much Question 3 (20 marks) Jason, owner of a small
hello dear, please help me this question in game theory with explanation, thank you so much
Question 3 (20 marks) Jason, owner of a small business, is prepared to make Elaine an offer as a salesperson based on a one year fixed-term contract. Elaine knows well that the contract has no prospect to renew. Now, Elaine has to decide whether she should enroll in a training course that costs her $1 1,000 before onboarding. On the other hand, Jason has to decide whether to pay Elaine a fixed monthly salary of $16,500 or share with Elaine the sales revenues on a 50:50 basis (assume there is no minimum pay regulations). Sales performance will be positively affected by both training and revenue sharing. If Elaine had no training and under a fixed salary scheme, monthly sales will be $35,000. With either training or revenue-split, monthly sales will become $42,000. If both training and revenue-split are implemented, monthly sales will increase to $54,000. You are required to answer the following: a) Construct the payoff matrix. b) Is there any dominant strategy? Is there any dominated strategy? Briefly explain. c) Is there any Nash equilibrium? Briefly explainStep by Step Solution
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