Question

An employer either hires or does not hire a new worker. if not hired, the game ends. if the worker is hired, he decides whether to do his job or slack off. there is a third player, a supervisor, whose job it is to monitor the worker. the supervisor decides to monitor the worker or not, and does not observe the worker's decision before deciding whether to monitor. if the supervisor catches the worker slacking off, the employer learns that the worker wasn't doing his job. the employer then decides whether to fire the worker or not. the employer is best off when the worker does his job than when he slacks off, but does get some happiness from firing the worker if caught slacking. the supervisor prefers not to monitor since it takes effort, and the worker prefers to slack off, except when it results in him being fired.

a. game g
b. game f
c. game e

Answer 1

The scenario described corresponds to game F. Option B

Three players are involved in this game setup: the supervisor, the worker, and the employer. In addition to wanting the employee to perform their job, the employer also gets a tinge of satisfaction from terminating an employee who exhibits signs of incompetence.

Despite not wanting to be fired, the employee would rather put in more time. Although it is up to the supervisor, she chooses not to supervise the employee because it takes more work. Game F's elements are aligned with the dynamics of monitoring, worker behavior (working or slacking off), and potential firing.