Question

Suppose there are two highly respected employees of a research organisation who have worked for more than a decade and are well off. But they steal valuable precious metals sell them in their co-owned shop by making them into jewellery. These two employees have been caught due to their suspicious logs and the missing precious materials in storage but currently there is no solid evidence against them, the manager decided to isolate them and give them a chance to confess; if they dont confess they'll get a fine of $2500 and a jail of 7 months. If they do confess, they'll get 4 year jail time. If employee A confesses and B doesnt, A will get a fine of $1800 and B will be jailed for 5 years. Similarly if B admits they'll get fined $1800 and A doesn't, they'll get jailed for 5 years. Can you:- 1. Defend this strategy and analyse its important? 2. Improve this strategy? 3. Predict what will be the outcome of the manager's strategy?

Answer 1

1. These all the 3 strategies are best to company since in any of the case either both are jailed for short period or any one of them is jailed for longer period. So that the manager get the work done by others.

2. Strategy of being not confessed can be improve by increasing the fine from $2500 to $3000 and decreasing the period of being jailed from 7 months to 4 months. It is because the suspected employees can afford to pay fine as they sold off the precious metal turning into jewellery and by decreasing of being jailed, after completing that 4 months the manager can receive work from them.

3. Outcome behind manager's strategy is that however, the higher respected employees will not try to confess and the imposition is favourable to the manager as explained in point 1.