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Problem 4. Textbook Chapter 13, problem 12. The Taiwanese government recently announced that they would begin construction of a high- speed rail system linking the

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Problem 4. Textbook Chapter 13, problem 12. The Taiwanese government recently announced that they would begin construction of a high- speed rail system linking the northernmost city of Taipei to the southernmost city, TaiNan. This high-speed train will alleviate the significant traffic problems that the country is experiencing. This is a highly lucrative construction project with many international companies involved in the bidding. However, it is clear that companies who have local negotiators possess a clear advantage in the bidding process. A construction company from Thailand has asked you to work for them in the hope that your connections will successfully help to secure a portion of the high-speed rail contract. You have given serious thought to the proposal and are now sitting in a meeting with the CEO. As the meeting progresses, the CEO brings up the subject of compensation. You listen intently and are surprised when he discusses the terms. The CEO proposes the following terms: you can take $ 20,000 per month for a period of two years regardless of whether or not you secure the high-speed rail contract, or you can gamble any

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