Why Don't Students Study and Employers Don't Pay High Salaries?

Georgi Kiranchev
University of National and World Economy

https://doi.org/10.53656/str2021-6-2-why

Abstract. The article examines the behavior of students and employers as a bimatrix game. With the tools of game theory, it is generally proven that the optimal strategy for employers is to pay low wages, and for students - not to study or to study very little. These two strategies form the Nash’s equilibrium in pure strategies. No specific numbers were used in the evidence, but only plausible assumptions about the relationships between the parameters used. This generalizes the conclusions made in the general case of higher education.
Such a study of the question using game theory has not been done yet.
Keywords: Game Theory; Games, Mixed Strategy; Optimal Strategy

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