We have 2 type of nodes, workers and bosses. Workers only play with bosses, workers never play with workers, and bosses never play with bosses. Both workers and bosses play strategy Unequal, they divide the total value produced by employment unequally, so that worker gets payoff Uw and the boss gets gets payoff Ub, which is greater than Uw. Now another strategy Equal, workers and bosses dicids the total value equally, so both get same payoff E. Now E is greater than Uw so workers would prefer strategy equal on the other hand E is less than Ub so the bosses would prefer strategy unequal. Both workers and bosses have to play the same strategy in every interaction if they play a different strategy the payoff for each is 0.

A) draw payoff matrix of game played between workers and bosses

B) worker plays unequal and interacts with d bosses. A fraction 1-p of those bosses play unequal and a fraction p play equal. What is the payoff to the worker for playing unequal?

C) the same worker in part B (previous) what is the payoff to the worker for playing equal instead?

D) what fraction of bosses would have to play equal before the worker would switch from unequal to equal? Write down threshold as a function of e and Uw.

E) workers payoff when he plays unequal becomes small, what does that do to threshold?

F) is it easier or harder for the sysmet to switch over to sharing equal value?