Fringe Benefits: President Decision Making
A president at a university wants to reduce expenditures on fringe benefits (while maintaining the quality of faculty and staff). The president appointed a task force, which consists of faculty and staff from departments throughout the university. The task force has been asked to design a new fringe benefit package.
Does the president want to commit to accepting the committee (task force) report or would the president want to reserve the right to make modifications? Explain.© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/economics/applied-economics/fringe-benefits-president-decision-making-beqf
...ration for their job. The task force has no incentive to reduce fringe costs. If you think about it as a question of utility, every member of the task force is seeking to minimize the effect on their individual utility from ...