Business, 29.04.2021 19:10 shaloveywrighty5965
ow suppose that there is asymmetric information regarding the value of Rafaela’s programming skills. Because Rafaela has limited social skills and is somewhat reclusive, she does not have a good sense of how her skills compare to other programmers. Rafaela knows only that the probability her skills are "extremely valuable" is 1 2 , whereas TiltSoft knows her skill level with certainty. Continue to assume Rafaela must make a take-itor-leave-it salary offer to the firm. What salary offer should she make, and under what conditions will Rafaela remain with TiltSoft? (Assume Rafaela is risk neutral and that her goal is to make the salary offer that will maximize her expected pay.)
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ow suppose that there is asymmetric information regarding the value of Rafaela’s programming skills....
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