Combined Arbitration Procedure with Quadratic Payoﬀ Function
We consider a non-cooperative zero-sum game. The players, the Labor and the Manager, negotiate an improvement in the wage rate. In a conﬂict situation the players appeal to the arbitrator. The arbitrator’s solution is a discrete random variable. In this paper we use two arbitration schemes with quadratic payoﬀ function. A mixed strategy Nash equilibrium in this game is found.