question archive The customer service department of a large firm employs / workers who are ordered by seniority from 1 to N
The customer service department of a large firm employs / workers who are ordered by seniority from 1 to N
Subject:EconomicsPrice: Bought3
The customer service department of a large firm employs / workers who are ordered by seniority from 1 to N. When someone applies for customer support, the application first lands on the desk of worker 1 who either takes the time and effort to consider it and render a decision, or transfers the request to worker 2, who either takes the time and effort to consider it and render a decision, or transfers it to worker 3, and so on up the hierarchy of the department. If the application makes it to worker N, then she has no choice but to take the time and effort to consider it and render a decision. Departmental rules require that if a request reaches worker k > 2, then she must reprimand worker k - 2 for failing to take care of the request. Each worker obtains a payoff of 2 if it does not handle any requests and is not reprimanded; a payoff of 1 if it handles a request; and a payoff of 0 if it is reprimanded. a. Describe the situation that arises when someone applies for customer service as an extensive form game. b. Characterize the Backwards Induction Nash Equilibrium of the game for N = 3. c. harder, attempt only if you have time] Characterize the Backwards Induction Nash Equilibrium of the game for general N 2 3.
