layer 1 is an employee (E) who works for a boss (player 2) can either work (W ) or shirk (S). The boss (B) can either monitor (M ) the employee or ignore (I) her. If the employee works, her utility is 3 no matter what the boss does. The employee's utility of shirking depends on whether the boss monitors her or not. If the employee shirks and the boss monitors her, the employee's utility is 2, otherwise her utility is 4. If the boss monitors, his utility is 3 no matter what the employee does. If the boss ignores the employee his utility is 5 if the employee works, and zero otherwise. Thus, as in many employee-boss relationships, if the employee works, the boss prefers not to monitor, but if the boss does not monitor, the employee prefers to shirk