Author Question: In bargaining between a bureau and the legislature over a budget, the legislature decides to ... (Read 49 times)

TFauchery · **on:** Jul 1, 2018

In bargaining between a bureau and the legislature over a budget, the legislature decides to purchase a certain amount of output at certain price and negotiates both simultaneously. This gives the bureau the opportunity to _____.

a. minimize their effort
b. extract all the legislature's consumer surplus from the bureau's output
c. maximize the bureau's profits
d. maximize the budget's producer surplus by extracting from the legislature large rents

Question 2

A player can choose among three strategies: T, M, and B. Nevertheless, strategy B is dominated by strategy T. This means that

A) strategy T is always played.
B) strategy B is never played.
C) strategy B will be part of a Nash equilibrium.
D) strategy M is never played.