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Unformatted text preview: working person. A Manager observes whether the worker went to college and either hires or fires him (but doesn’t know type). The manager gets a payoff of 200 if he hires a hard worker, 0 if he hires a lazy guy, and 150 if he fires the guy (either type). The worker gets a benefit of 150 if he is hired, 0 if he is fired. Find a PBNE. Answer: One PBNE is for Worker to choose no college if lazy, college if hard working; Manager choose hire if the worker went to college, fire if the worker did not go to college, and beliefs that someone who chose college is hard working with prob 1 and someone who did not is lazy with prob 1. Another PBNE is for both types of worker to choose no college, the manager to fire regardless of whether they went to college, and the beliefs to be that the worker is lazy with prob 0.5 regardless of whether they went to college....
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This note was uploaded on 02/24/2011 for the course ECO 4400 taught by Professor Lightle during the Fall '10 term at FSU.
- Fall '10