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Two companies have exactly one job opening each. Firm one offers salary p1while firm two offers salary p2such that p1 < p2. Two applicants, making
Two companies have exactly one job opening each. Firm one offers salary p1while firm two offers salary p2such that p1 < p2. Two applicants, making independent and simultaneous decisions, can apply to one of the two jobs. If only one application applies to a job, they get the job. If both apply to the same company, the company flips a coin to decide who is hired, and the other is unemployed. Create a game matrix to represent this situation. Identify any Nash Equilibriums.
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