Consider the following game: Raquel is an employee, he has to choose whether to pursue training that costs £1 to herself or not. Vera is an employer, he has to decide whether to pay a fixed wage of £10 to Raquel or share the revenues of the enterprise 50:50 with Raquel. The revenue is positively affected by both training and revenue sharing. Indeed, with no training and a fixed wage total revenue is £20, while if either training or profit sharing is implemented the total revenue rises to £22. If both training and revenue sharing are implemented the total revenue is £25. which of the following statements is not true?
A.
There are two players in the game, they are Raquel and Vera.
B.
Raquel’s strategies are “Training” and “No Training”, Vera’s strategies are “Fixed wage” and “Revenue sharing”.
C.
If Raquel choose strategy “No Training” and Vera choose strategy “Revenue sharing”, their payoffs are (11, 11)
D.
If Raquel choose strategy “Training” and Vera choose strategy “Fixed wage”, their payoffs are (9, 10)