Question
Suppose you receive an outside offer of employment that provides a substantial raise over your current salary. The outside offer should improve your bargaining position
Suppose you receive an outside offer of employment that provides a substantial raise over your current salary. The outside offer should improve your bargaining position with your current employer. However, your supervisor may also decide not to bargain and leave you to remain in your current job without a raise or to take the outside offer. So, we can view this bargaining relationship with your employer as a repeated game that takes another turn whenever you receive another outside opportunity. What do the principles about repeated games and bargaining imply for your approach to managing this relationship?
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