Suppose that you are a manager. You are considering whether or not to monitor employees with the payoffs in the normal-form game shown below. Which of the following pairs of strategies constitutes a Nash equilibrium?
A) Manager monitors and worker works.
B) Manager does not monitor and worker works.
C) Manager monitors and worker shirks.
D) None of the answers is correct.

Question

Suppose that you are a manager. You are considering whether or not to monitor employees with the payoffs in the normal-form game shown below.  Which of the following pairs of strategies constitutes a Nash equilibrium?
A) Manager monitors and worker works. 
B) Manager does not monitor and worker works. 
C) Manager monitors and worker shirks. 
D) None of the answers is correct.

Quizplus · Accepted Answer

The Answer of Suppose that you are a manager. You are considering whether or not to monitor employees with the payoffs in the normal-form game shown below.  Which of the following pairs of strategies constitutes a Nash equilibrium?
A) Manager monitors and worker works. 
B) Manager does not monitor and worker works. 
C) Manager monitors and worker shirks. 
D) None of the answers is correct.

Suppose That You Are a Manager