The (strategic interaction) game played by the employer and the employee in the

Question

The (strategic interaction) game played by the employer and the employee in the labour discipline model is best described as the following: SELECT ALL THE BEST POSSIBLE ANSWERS

a.) The game is a simultaneous game where the employer chooses the wage level and the employee chooses the effort level simultaneously.

b.) The game is a one-off game where the wage and effort levels are determined once and for all.

c.) The worker selects the effort level that balances his desire to keep his job with his desire to not exhaust himself on the job.

d.) The employer will attempt to maximize the firm’s profits by offering a wage equal to the worker’s reservation wage.

Explanation / Answer

Correct Option is option C

The worker selects the effort level that balances his desire to keep his job with his desire to not exhaust himself on the job.

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