Question.1919 - Complete the individual problems and submit your solutions using Turnitin. It is not necessary to restate the exercise/prompt, but to provide a thorough write-up of your response/solution. Submit answers only in a Word document or PDF. Use APA format for all external references. Chapter 15: Strategic Games 15-1 To Vote or Not To Vote Mr. and Mrs. Ward typically vote oppositely in elections and so their votes “cancel each other out.” They each gain two units of utility from a vote for their position (and lose two units of utility from a vote against their position). However, the bother of actually voting costs each one unit of utility. Diagram a game in which they choose whether to vote or not to vote. 15-2 To Vote or Not To Vote, Part 2 Suppose Mr. and Mrs. Ward agreed not to vote in tomorrow’s election. Would such an agreement improve utility? Would such an agreement be an equilibrium? 15-6 Entry Game With Withdrawal In the text, we considered a sequential move game in which an entrant was considering entering an industry in competition with an incumbent firm (Figure 15-1). Consider now that the entrant, if fought, has the possibility of withdrawing from the industry (at a loss of one for the entrant and a gain of eight for the incumbent) or staying (at a loss of five for each player). What is the equilibrium of this game? Discuss whether the entrant is better off with or without the ability to withdraw. Chapter 16: Bargaining 16-3 House Closing4/9/24, 6:36 PM 6.3 Homework Assignment https://floridatech.instructure.com/courses/8916/assignments/187164 2/2 You’ve entered into a contract to purchase a new house and the closing is scheduled for next week. It’s typical for some last-minute bargaining to occur at the closing table, where sellers often try to tack on extra fees. You have three options for the closing: (1) attend yourself, (2) send an attorney authorized to close only per the previously negotiated terms, or (3) presign all the closing documents per the current terms and don’t attend the closing. Which of these would be most advantageous from a bargaining position? Parameters: Submit a Word document or PDF and use APA format. No handwritten submissions. Due: Sunday by 11:59 p.m. ET Submission method: Turnitin Points: 25 Plagiarism You are expected to write primarily in your own voice, using paraphrase, summary, and synthesis techniques when integrating information from class and outside sources. Use an author’s exact words only when the language is especially vivid, unique, or needed for technical accuracy. Failure to do so may result in charges of Academic Dishonesty. Overusing an author’s exact words, such as including block quotations to meet word counts, may lead your readers to conclude that you lack appropriate comprehension of the subject matter or that you are neither an original thinker nor a skillful writer.
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Chapter 15: Strategic Games 15-1 To Vote or Not To Vote People named Mr. and Mrs. Ward have to decide in this game whether to vote or not to vote in an election. If someone votes for them, they each get two units of utility. If someone votes against them, they each lose two units of utility. However, the trouble of voting costs each person one unit of value (Baber & Fletcher-Chen, 2020). To make a picture of this game, we can use a simple matrix: Vote Not Vote Vote (1, 1) (0, 0) Not Vote (0, 0) (0, 0) In this matrix: The first number shows the utility gain for Mr. Ward. The second number shows how much Mrs Ward will benefit from the change. If they both vote, they can't lose or win anything because their votes cancel each other out. One person who chooses gets something helpful, while the other person who doesn't vote gets nothing. 15-2 To Vote or Not To Vote, Part 2 Let's say Mr. and Mrs. Ward agreed not to vote tomorrow. Would this kind of understanding make things more useful? A deal like this would be balanced. In this case, if Mr. and Mrs. Ward agree not to vote, they will save one unit of energy by not having to go to the polls. So, yes, such a deal would make them more valuable because they wouldn't have to pay to vote when they wouldn't get anything out of it (Gates, 2022). But it's not possible to say that it's a balance because they have to be able to keep their end of the deal for it to be accurate. If there is a chance and a reason for one of them to break the deal and get more benefits, then it is not a Nash equilibrium. It's also possible for things to be equal if neither side can honestly say they won't vote, considering the other side might not. 15-6 Entry Game With Withdrawal In this game, one of the players is thinking about getting into a specific field, which would affect the business of an existing company. When it goes the other way, the incumbent gains even eight times, while the attacker can take complete control, and the newcomer has to leave the market at a loss. The next move is to stay, putting each person in the hole (Georgiadouet al., 2020). Let's represent this game in matrix form: Withdraw Stay Enter (7, -7) (-5, -5) Not Enter (0, 0) (0, 0) In this matrix: The first number shows the entrant's utility gain . The second number demonstrates the energy gain for the incumbent. The balance of this game is determined by how the players play and what they get out of it. The incumbent's struggle makes the race more complex, so the newcomer will withdraw and take it easy to avoid losing significant money. If, on the other hand, the newcomer is aware that the existing player is not at war, they may consider joining the competitive field. It's safe to argue that today's politicians have this understanding and strive to stay in power and gain as much money as possible. So, the power of this game of balance is for the new player to give up and let the current player battle till the conclusion. It depends on the facts of the case to determine whether the entrant is better off with or without the ability to resign. The contender could save a lot of money if they compete against the local producers, who have the most stake in the game. Still, because they cannot leave and breathe for now, the corporation may do other things, such as chatting, to compete successfully in the industry. Chapter 16: Bargaining 16-3 House Closing You can either attend the closing yourself, send an attorney authorized to close solely under the terms you agreed to, or sign all the closing paperwork according to the new terms and skip the closing. From a trading perspective, each option offers advantages and disadvantages (Hart & Schweitzer, 2020). Attend to Yourself: This option allows you to discuss and negotiate the specific impact of any last-minute adjustments or fees that the seller makes. You may have had the opportunity to sit at the table earlier to discuss the contract and adjust some specifics, which could be helpful if additional issues arise. Send an Attorney. A lawyer provides comprehensive counsel and can only close based on what was agreed upon before the transaction. This makes it less likely that the seller will give further invoices for discussion. Aside from that, this option ensures that the seller cannot add anything to the chat after the negotiations begin at midnight. Presign Documents and Do Not Attend: By signing all of the closing papers on the other side and not attending the closure so that you don't have to deal with any potential last-minute conversations, you detach yourself from this alternating situation. This option may work for you if you are confident that the other person will keep their end of the bargain and are not afraid of the dangers. Your optimum bargaining condition will be determined by how the negotiations progress and how well you get along with the seller. On the one hand, choose a lawyer who will only do something once the transaction is completed (Rohde, 2020). On the other side, please demonstrate that you are both engaged in negotiating and carrying out the terms agreed upon at the outset, so you do not have to deal with lawyers again and their fees or adjustments. References Baber, W. W., & Fletcher-Chen, C. C. (2020). Practical business negotiation. Routledge. https://doi.org/10.4324/9780367822422 Gates, S. (2022). The negotiation book: Your definitive guide to successful negotiating. John Wiley & Sons. The Negotiation Book: Your Definitive Guide to Successful Negotiating - Steve Gates - Google Books Georgiadou, E., Angelopoulos, S., & Drake, H. (2020). Big data analytics and international negotiations: Sentiment analysis of Brexit negotiating outcomes. International Journal of Information Management, 51, 102048. https://doi.org/10.1016/j.ijinfomgt.2019.102048 Hart, E., & Schweitzer, M. E. (2020). Getting to less: When negotiating harms post-agreement performance. Organizational Behavior and Human Decision Processes, 156, 155-175. https://doi.org/10.1016/j.obhdp.2019.09.005 Rohde, K. A. (2020). Mindful Negotiator: The Relationship Between Mindfulness and the Dimensions of Negotiation Effectiveness. https://thesis.eur.nl/pub/65655/THESIS-DRAFT-FINAll-2.pdfMore Articles From Business Law
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