Strike by a labor union

A labor leader has announced that her union will go on strike unless you grant the workers a significant pay raise. You realize that a strike will cost you more money than the pay raise. Should you concede to the wage increase?

Shareholders and the problems with managers and directors monitoring

It is worthwhile for shareholders to seek to completely eliminate incentive problems with managers and directors through means such as monitoring?

Question pertaining to EBay

1. How does eBay create value? 2. What potential contracting problesm exist on ebay? 3. How does eBay address these problems? 4. What are the contracting cost at ebay 5. EBay claims that it has only a small problem with fraud and misuse of the sytem. Does this imply that it is overinvesting in addressing potention contracting problems? Underinvesting? Explain.

Microsoft and Intel- Competition or coordination

Suppose Microsoft can produce a new sophisticated sofeware product. However, it wants to do so only if Intel produces high speed microprocessors. Otherwise, the software will not sell. Intel, in turn, wants to produce high-speed microprocessor only if there is popular softwar on the market that requires high speed processing. Is this a game of competition or coordination? What is the equilibrium?

Managerial Economics

Some foolish teenagers play "chicken" on Friday nights. Two teenagers drive their cars at each other at high speeds. The first to swerve to the side is the "chicken" and loses. If both swerve out of the way, they are both chicken and both lose. Neithe4r of the drivers wants to get into an accident. It causes a significant loss in utility (possibly death). However, both do not want to be known as a chicken. This causes some loss in utility. What is the equilibrium of this game? Do you think the two drivers will necessarily produce an equilibrium outcome? Do you think the chances are better or worse for achieving and equilibrium outcome if the tow players know each other? Explain. D... click for more