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Comprehension Check Problem 2
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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.
- That means, (Ann → Job1, Bob → Job2) or (Ann → Job2, Bob → Job1), each have equal probability.
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,
- The worker accepts any wage higher than or equal to the minimum willingness to accept
In that case, your profit is: Revenue the worker brings you - Wage Offer
- Otherwise, the worker rejects the offered wage
In that case, your profit is 0
Your final profit is the summation of the profit from two jobs.
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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