Analysis of strategic interaction between employer and employee: do their interest in a same direction?

Younes Brumand¹

1) urmia university

IOI Code : XYBB-ZHDBC
Publication : 3rd International Conference On Research Science And Technology(3rstconf.com)
Abstract :
    In this paper, the interaction between employee and employerwill be considered in the workplace using game theory.Employer, in order to maximize his own profit, wants the employee work more and increases his productivity.This would be impossible without motivating the employee, so the employer must incur an expense. On the other hand, employeeis facing two strategies; one is to work more hard and anotheris to do that little. Choosing one of these depends on what the employer selects to motivate the employee. What we propose in this article is that the employer motivates the employee through changes in wage. It means when your income is high give the employee a high wage and when the income is low give the employee a low wage.Of course the costs associated with this solution will be dealt as well. The results achieved from the investigation of this approach show that if the employee decides to work more hard, then the employer will give him more.

Keywords : employee employer game theory