Question: A. Suppose first that worker productivity is directly observable by employers; that is, firms can tell who is a type 1 and who is a

A. Suppose first that worker productivity is directly observable by employers; that is, firms can tell who is a type 1 and who is a type 2 worker by just looking at them.

a. Solving this game backwards, what strategy will the worker employ in stage 3 when choosing between wage offers?

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