Question 14 Consider the game below with a worker (W) and a firm (F). The worker initially can choose to acquire skills or not acquire skills. If the worker does acquire skills, the firm then gets to decide whether to compensate the worker or not. The extensive form of the game and the payoffs are below. Which of the following is true? We Acquirre Not Acquire C Compensate Not Compensate (0,0) (10.10) (-5,20)

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Question 14
Consider the game below with a worker (W) and a firm (F). The worker initially can
choose to acquire skills or not acquire skills. If the worker does acquire skills, the firm
then gets to decide whether to compensate the worker or not. The extensive form of the
game and the payoffs are below. Which of the following is true?
We
Acquirre
Not Acquire
C Compensate
Not Compensate
(0,0)
This game has a single Nash equilibrium.
There are two Nash equilibria.
There is no Nash equilibrium.
None of the above.
(10.10)
(-5,20)
Both players have a strictly dominant strategy.
Transcribed Image Text:answered rrect Answer Question 14 Consider the game below with a worker (W) and a firm (F). The worker initially can choose to acquire skills or not acquire skills. If the worker does acquire skills, the firm then gets to decide whether to compensate the worker or not. The extensive form of the game and the payoffs are below. Which of the following is true? We Acquirre Not Acquire C Compensate Not Compensate (0,0) This game has a single Nash equilibrium. There are two Nash equilibria. There is no Nash equilibrium. None of the above. (10.10) (-5,20) Both players have a strictly dominant strategy.
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