DEPT OF COMPUTING, ENGINEERING AND TECHNOLOGY MODU Custom Research Paper Help

DEPT OF COMPUTING, ENGINEERING AND TECHNOLOGY MODU Custom Research Paper Help

Instructions for Salary Negotiation Game Students are randomly assigned to one of two positions: Applicant or Recruiter. Each Applicant is randomly matched with a Recruiter, and the two are informed about each other s Pen Name and Gender. The Applicant (but not the Recruiter) knows part of the value they bring to the firm. This partial value A is drawn from the numbers 1, 2, , 100, with each number being equally likely to be drawn. The Recruiter (but not the Applicant) knows the other part of the value the firm will get out of the Applicant. This partial value R is drawn from the numbers 1, 2, , 100, with each number being equally likely to be drawn. The total value of the Applicant to the firm is A+R. The Applicant knows the value A, but not the value R. The Recruiter knows the value R, but not the value A. In STAGE ONE, the Recruiter offers a salary (a number between 1 and 200). In STAGE TWO, the Applicant accepts the salary, rejects the salary, or make a counteroffer (a number between 1 and 200). If the Applicant accepts or rejects the salary, the game ends. If the Applicant makes a counteroffer, the game continues. In STAGE THREE, the Recruiter accepts or rejects the Applicant s counteroffer. If the Applicant gets hired by the Recruiter at a salary S, then the Applicant gets game points equal to S (the salary) and the Recruiter gets game points equal to A+R-S (the total value of the Applicant to the firm minus the salary paid out to the Applicant). If the Applicant does not get hired by the Recruiter, then the Applicant gets A game points and the Recruiter gets R game points. (The presumption is that the Applicant will get hired by somebody else and the Recruiter will hire yet somebody else. They gain from those employment relationships to the tune of A and R.)


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