Your employees make $20 per hour and work 2000 hours per year Suppose that your employees can get an outside offer of $30 per hour for 1900 hour per year Consider just 1 period You do not know if the employees have a high moving cost ($20,000) or low ($0) The cost for your organization to lose an employee amounts to $20,000

Set up an extensive form game (players, payoffs, actions) to decide whether to commit to match outside offers, or not [4 points]

Find the maximum probability of the employees having a high cost of moving such that the employer will choose to match the outside offer [2 points]

Suppose that the cost of losing an employee goes to $23,000. What is the maximum probability of the employees having a high cost of moving such that the employer will choose to match the outside offer? [2 points]

Suppose that the high moving cost falls to $2,000, and the cost of losing an employee is $20,000. What is the maximum probability of the employees having a high cost of moving such that the employer will choose to match the outside offer? [2 point]