{{ block title }} Comprehension Check Problem 2 {{ endblock }} {{ block content }}
  • There are two empty job positions, one for Job 1 and one for Job 2.
  • There are two workers, Ann and Bob.
  • With equal chance, Ann applies for Job 1 and Bob applies for Job 2 or vice versa.
  • You will submit your wage offers. You will submit one wage for each job. When you make the offers, you do not know who applies for which position.
  • The revenue each worker brings you when you hire them is given as follows:
  • Revenue from each Worker
    Ann Bob
    Job 1 52 37
    Job 2 45 29
  • Each worker has a minimum willingness to accept, which means the minimum wage that the worker would accept.
    For each job and each worker,
  • Minimum Willingness to Accept
    Ann Bob
    Job 1 32 35
    Job 2 20 28
  • Suppose that you choose 35 for Job 1 and 22 for Job 2
  • What would be the revenue for Case 1 (Ann → Job1, Bob → Job2) and Case 2 (Ann → Job2, Bob → Job1) each?
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