A man named Smith once told me the story of his two uncles, Uncle Sile and Uncle
Howard. They were chopping wood on their farm one day when Sile said, "Howard, put
your finger on that block and I’ll chop it off." Howard did put his finger on the block, and
Sile did chop it off.

Howard didn’t think Sile would chop, and Sile didn’t think Howard would leave his
finger there. Assume that both Sile and Howard think that the outcome that occurred was
the least desirable of the possible outcomes.

(a) Why kind of game is this, among all those you have learnt so far ?
(b) Show his finger-chopping game in strategic form, ranking the outcomes from 0, 1,
2 and 3 for each player.
(c) What might be the moral of the story for labour-management negotiations, or for
that matter, negotiations among nations?