Every three years, the Writers Guild of America renegotiates a Minimum Basic Agreement (MBA) with the Alliance of Motio Picture and Television Producers (AMPTP). The MBA includes agreements on basic compensation, salaries, royalties, etc., an ownership of original written material. In the fall of 2007, the Writers Guild and AMPTP were embroiled in an intense negotiation, mainly disagreeing on how writer are compensated for digital media work such as web series and online-only content. The given payoff matrix contains the strategies and outcomes of each party in the negotiation. They could either compromise (C) or hold firm (HF) on their issues. both parties hold firm, the Writers Guild will go on strike. The first number in each box is the Writers Guild's payoff and the second number is AMPTP's payoff. Assume that strategies are chosen independently and simultaneously. AMPTP Writers Guild Hold firm Compromise What are the Nash equilibria? This is an example of the Hold firm Compromise 10,3 5,5 0,0 3,10 Writers Guild holds firm and AMPTP holds firm Writers Guild holds firm and AMPTP compromises Writers Guild compromises and AMPTP holds firm Writers Guild compromises and AMPTP compromises
Every three years, the Writers Guild of America renegotiates a Minimum Basic Agreement (MBA) with the Alliance of Motio Picture and Television Producers (AMPTP). The MBA includes agreements on basic compensation, salaries, royalties, etc., an ownership of original written material. In the fall of 2007, the Writers Guild and AMPTP were embroiled in an intense negotiation, mainly disagreeing on how writer are compensated for digital media work such as web series and online-only content. The given payoff matrix contains the strategies and outcomes of each party in the negotiation. They could either compromise (C) or hold firm (HF) on their issues. both parties hold firm, the Writers Guild will go on strike. The first number in each box is the Writers Guild's payoff and the second number is AMPTP's payoff. Assume that strategies are chosen independently and simultaneously. AMPTP Writers Guild Hold firm Compromise What are the Nash equilibria? This is an example of the Hold firm Compromise 10,3 5,5 0,0 3,10 Writers Guild holds firm and AMPTP holds firm Writers Guild holds firm and AMPTP compromises Writers Guild compromises and AMPTP holds firm Writers Guild compromises and AMPTP compromises
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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