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Answer the following questions. At least 150 words each.
1. You want one of your employees to reduce his/her rate of absenteeism. Would you use a threat or promise? Explain why. What are the advantages and disadvantages of each?
2.In light of the material in lecture 13, how can the lavish downtown office space of an advertising company be justified? Provide a separate example from your own experience of signaling or screening.
3. Two lanes of traffic are narrowing to one because of an accident on the road ahead. The drivers of 10 cars have ignored your turn signal and refused to allow you to merge into the single lane available. Finally, someone lets you into the lane. Does this history change your decision on letting other drivers into the single lane? Why? Is your behavior rational? Which game theory concepts relate to this situation?