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Unformatted text preview: becomes binding. Suppose it is common knowledge that the arbitrator has in mind a salary of $ V and that he will choose whichever of the salaries proposed by the team and the player is closest to $ V . Draw the reaction correspondences (ie. best response sets) for the team and the player and identify the Nash equilibrium. Exercises 18.2, 19.1, 24.1 and 27.2....
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This note was uploaded on 12/26/2011 for the course ECON 210B taught by Professor Garratt during the Fall '09 term at UCSB.
- Fall '09