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Unformatted text preview: ENGRI 1101 Engineering Applications of OR Fall ’08 Homework 12 Game Theory • Due date: 4:00pm on Friday, December 12, 2008 in the ENGRI 1101 box at the west end of the corridor on the second floor of Rhodes Hall, where it connects to Upson. • Reading assignment: Handout 10-11 in the course packet. • Make sure to put your name and section on the cover page and staple the problems in order. 1. (40 points) (adapted from Hillier & Lieberman) The labor union and management of a particular company have been negotiating a new labor contract. However, negotiations have now come to an impasse, with management making a final offer of a wage increase of $1.10 per hour, and the union making a final demand of a $1.60 per hour increase. Therefore, both sides have agreed to let an impartial arbitrator set the wage increase somewhere between the two figures. Each side must submit a sealed (i.e., secret) final proposal (rounded to a multiple of ten cents) for arbitration. Both sides know how the arbitrator will decide the outcome from arbitration for a given pair of proposals: the...
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- Game Theory, English-language films, optimal strategy