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Lori employs Max. She wants him to work hard rather than to loaf. She considers offering him a bonus or not giving him one. All
Lori employs Max. She wants him to work hard rather than to loaf. She considers offering him a bonus
or not giving him one. All else the same, Max prefers to loaf. The payoff matrix is illustrated to the right.
If they choose their actions simultaneously, what are their strategies?
Lori
and Max
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