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The following represents the potential outcomes of your first salary negotiation after graduation: Assuming this is a sequential move game with the employer moving first, indicate most likely outcome. Does the ability to move first give the employer an advantage? If so, how? As the employee, is there anything you could do to realize a higher payoff?

Employer
Low Salary Offer High Salary Offer
Employee Walks Employee Accepts Employee Walks Employee Accepts
Employer gets 0 Employer gets 100 Employer gets 0 Employer gets 100
Employee gets 0 Employee Gets 75 Employee gets 0 Employee Gets 75

Microeconomics, Economics

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