17. The management of a corporation is in the process of deciding whether to agree to negotiate with the striking union now or delay. The decision is difficult because the management does not know the union leadership's position. The union leaders may be adamant and insist on their original demands, they may be ready to compromise or they may be ready to Yield and accept the original management offer. The matrix ofpaY-offs to management, as management sees it, is (in Rs 1 million units).

(a) Solve the management's problem.

(b) What should be the union's strategy?

(c) Discuss the implications ofa conclusion to adopt a random strategy

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Union position B B B Adamant Compromise Yield A Negotiate A Delay -2 1 2 5 -2 -3