A company is currently involved in negotiations with its union on the upcoming wage contract. With the

Question:

A company is currently involved in negotiations with its union on the upcoming wage contract.

With the aid of an outside mediator, the table below was constructed by the management group. The pluses are to be interpreted as proposed wage increases while a minus figure indicates that a wage reduction is proposed. The mediator informs the management group that he has been in touch with the union and that they have constructed a table that is comparable to the table developed by the management. Both the company and the union must decide on an overall strategy before negotiations begin. The management group understands the relationship of company strategies to union strategies in the following table but lacks specific knowledge of game theory to select the best strategy ( or strategies) for the firm. Assist the management on this problem. What game value and strategies are available to the opposing groups?

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