Consider a market in which workers choose between working as an academic or as an entrepreneur. A worker's own productivity as an academic (the revenue generated for the university), , is private information. Universities view the productivity of workers as academics as a random variable that is uniformly distributed on the interval [0,1]. The good academics are bad entrepreneurs, and vice versa. Specifically, a worker with productivity as an academic would earn f() as an entrepreneur, where f()=1. Universities pay academics a wage w and the market is competitive. Universities and workers are risk neutral expected utility maximisers. Explain and derive the competitive equilibrium of this market. Discuss the equilibrium's properties and what policy intervention, if any, might be appropriate