Consider a household consisting of four college friends. The friends have made a commitment
to live together for the next five years. Presently they live in Milwaukee where Abby will earn
$200,000, Bonnie will earn $120,000, Cathy will earn $315,000, and Donna will earn $150,000
over the next five years. They have the option of moving to Miami. Moving to Miami would
impose a one-time moving cost of $5,000 on each person. If they move to Miami, however,
Abby will earn $180,000, Bonnie will earn $150,000, Cathy will earn $300,000, and Donna will
earn $100,000 over the next five years. Moreover, each friend prefers to live in Miami over
Milwaukee. In particular, Abby and Bonnie both value the quality of life in Miami versus
Milwaukee over the next five years at $40,000 while Cathy and Donna place the value at
$25,000 each. Should the household move to Miami or stay in Milwaukee? Is anyone a tiedmover or a tied stayer?

If they all decide to remain in Omaha three of the four friends namely Bonnie, Abby, Cathy will compromise in value, they are also called ties stayers.

Explanation:

Solution:

The Tied mover: Refers to a person who moves with the partner even though the person's employment outlook is better at the current location.

Now,

If all friends decided to move to Miami, Donna will compromise in value, so Dana is a Tied Mover.

The Tied Stayer: Refers to a person who stays with the partner at current location even though the person's employment outlook is better somewhere else.

If all friends decided to stay in Omaha, Abby, Bonnie and Cathy will compromise in value, so Abby, Bonnie and Cathy are Tied Stayers.

Note: Kindly find an attached copy of the tabular form entry for all four friends given below.