Uploaded by ashtoncb18

Assumptions

advertisement
The most efficient deal is reducing the amount of hours by 1 to 10 hours, introducing the fuel
tax, and not charging the 10 truckers in the dispute. This deal is the most efficient and fair,
because it provides the government with what it wanted the most, the fuel tax and the truckers
only lose one hour off the maximum number of hours they can drive. Since the truckers lose an
hour, the 10 truckers are not charged in the dispute making both sides must give up something
in the arrangement. There are better deals, but this deal makes the leverage equal for both
sides meaning that no one side will think the other will have the advantage. This deal is also
almost right on the Equity balance line and in the Efficient frontier curve where good deals are
mapped, thereby proving that this is a fair and good deal. In the proposed deal, the government
gets what they want, but the truckers take a 2-hour cut from the total hours they can drive.
This deal does not provide both sides with what they want. It is in my opinion that my proposed
deal should be the one chosen, because it both fair and a better deal than the proposed deal.
Assumptions:
1. The Government or Truckers might not accept a better deal, because the other side is getting
more benefit from the deal at the expense of the other party.
2. A better deal could be accepted for a concession in the future if there is not equal leverage. A
concession would be a negotiation on an issue that the side who is getting the worse part of the
deal will bring to the side that is getting the better part of the deal.
3. Look for the deal that will bring the best benefit to both sides while staying equal in leverage
Download