Game+Theory+10

=Employee of the Month Dilemma= **__ General Description of Game __** You and a co-worker are in a sweatshop factory located in the jungles of North Vietnam, working for 35 cents an hour assembling hockey sticks. At your sweatshop factory your boss has decided to have an employee of the month contest, the winner will get a bonus pay at the end of the month. Assume both players have starving families (that are surprisingly healthy) and will do everything possible to bring more money home at the end of the month. **__ Rules of the Game __** At the end of the month the employee that works the hardest (greatest effort above the average sweatshop worker) will get bonus pay. If both workers tie, the boss will split the money, giving them each $5. If one person wins, the boss will take $3 from the other worker to help him pay a bonus of $8 to the winner. If none of the workers try to win, everyone will be at the average, and the boss will assume that everyone is working at their maximum level of output and reward them all with $7. The last rule is that nobody can bribe the boss, meaning you have to assume that the boss is honest. **__ Materials Required __** Sweatshop factory, a greedy boss, and probably $10
 * __Predicted Results__**

|| work normally || || $8, $-3 || || $7, $7 ||
 * ||  || You || ||
 * || || work to impress
 * Worker 2 || work to impress || $5, $5
 * || work normally || $-3, $8

The Nash Equilibrium woud lead both workers in the "work to impress" box if they both followed their dominant strategies.