Management and a labor union are bargaining over how much


Management and a labor union are bargaining over how much of a $50 surplus to give to the union. THE $50 is divisible up to one cent. The players have one-shot to reach an agreement. Management has the ability to announce what it wants first, and then the labor union can accept or reject the offer. Both players get zero if the total amounts asked for exceed $50.. i f you were the labor union, which ype of "rules of play" would you prefer to divide the $50 surplus ?

a. Management requests $50 and the labor union accepts $0

b. Management requests $35 and the labor union accepts $10

c. Management requests $20 and the labor union accepts $20

d. Management requests $25 and the labor union accepts $10

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