Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I want the answers to the questions below the answers should be given with reasoning as mentioned below in the question. I would definitely give
I want the answers to the questions below the answers should be given with reasoning as mentioned below in the question. I would definitely give an upvote if the solution provided to me is correct and all the questions are answered.
- Assign roles: A \& B - Role for person "A": Yao Ming (i.e. "YM"), a star player/worker; - Role for person "B": Jeff Van Gundy (i.e. "JVG"), the General Manager (i.e. the big boss responsible for team performance, but also team finances). - If there is a third person, then as an agent, person " C " helps Yao plan his strategy BEFORE beginning negotiations with JVG. If there is a fourth person, then person "D" helps JVG plan his strategy BEFORE beginning negotiations with YM. So, "D" is basically the Assistant General Manager. Background The Houston Rockets team plays in the National Basketball Association (NBA). Most people still think that Tracy McGrady is Houston's best player/worker. Certainly, he used to be! Others think that Yao Ming (YM) is now challenging to be the best player/worker in this organization, and is becoming one of the better ones in the whole industry. One thing is for sure. All else equal, tall players usually earn extra money because they are so hard to find. YM is much taller than Tracy McGrady. In fact, YM is the tallest player/worker in the whole industry! But, like in other industries, older workers have usually "climbed up the salary ladder' more than young ones. Yao just completed his second year in the league, whereas Tracy is a 10+ year veteran. There are 10 players/workers on Houston Rockets. That is a league rule. There must be exactly 10 players/workers per team. There is a salary ceiling in the NBA. No team can spend more than $25MM dollars per year on player/worker salaries. Tracy McGrady earns \$8MM per year and has an unbreakable, untradeable long-term contract to get that salary every year! Let's face it, sports fans and experts think McGrady is overpaid and 'long in the tooth'. YM is currently earning (only) \$1.5MM per year! YM is about to negotiate a new annual salary for the coming year. Note: Yao's 'rights' belong to Houston. He cannot leave and play for another team in the NBA. In fact, if he and JVG cannot agree, then Yao's salary for the coming year would automatically increase by 10%, and so he would make $1.65MM, unless the two parties agree to redo his salary. YOU CANNOT NEGOTIATE ANYTHING ELSE. NO SIDE DEALS OR EXTRA TERMS. JVG will negotiate on behalf of the employer, the Houston Rockets. Task One: Please write down, BUT KEEP SECRET until the negotiations are over, the narrow salary range that you think is fair for Yao for next year. Task Two: Please negotiate YM's new annual salary for the next year only. You cannot add any complications. Please provide ONLY the negotiated salary amount, and the original targeted salaries. Remember: the more that YM and Tracy McGrady make, the less money that is left over for the remaining 8 players/workers on the Houston Rockets team. JVG wants YM to be happy, but cannot afford to pay YM too much. What salary did YM (and his agent) ORIGINALLY think was fair for Yao: ? (from Task One) In one sentence, please defend your original, secret answer: What salary did JVG (and the Asst Gen Mgr) ORIGINALLY think was fair for Yao: ? (from Task One) In one sentence, please defend your original, secret answer: Negotiated salary for next year: $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started