You have worked for a company for several years as a mid-level manager. A Vice President announces that she plans to retire in one year. You and two other managers at your level are candidates to replace her. One of the candidates (Person "C") works in another division and you rarely interact with C. The other candidate (Person "B") works in your division, and you often work closely with B on projects of various kinds.

The race for the VP job is currently very close, and it will likely go to the person who performs at the highest level in the next 12 months. Because you often work closely with B, B is in a position to affect the outcome of projects for which you have primary responsibility. The opposite is also true: you are in a position to affect the outcomes of projects for which B has primary responsibility.

The situation may be viewed as a two-person game between you and B in which you each have two possible courses of action.

Question:

1. What are the two choices you have? What are the two choices of person B?
2. Making any other assumptions that may be necessary (be sure to note them explicitly), describe what needs to be true for this situation to resemble a Prisoner's Dilemma. Think of payoffs in terms of the probabilities you and person B getting the VP job. Your answer should provide the payoffs associated with the payoff matrix below. That is, your answer should provide values (probabilities) for a,b,c,d,e,f, and g.
3. If both you and person B play strictly according to the payoff matrix you constructed in question 2, who will get the VP job? Explain by referring to the payoff matrix you provided in your answer to part 2 above.
4. Suppose the VP observes this situation. Why will she view it with concern? What kinds of management policies could she implement that might lead to a better outcome? Answer in two or three sentences.