Compute the pbe of the job market signaling model

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Reference no: EM131250008

Consider the job-market signaling model analyzed in this chapter. Would an education be a useful signal of the worker's type if the types had the same education cost? Explain your answer ?

Compute the PBE of the job-market signaling model under the assumption that the worker is a high type with probability 1/2 and a low type with probability 1/2 (rather than probabilities of 1/3 and 2/3 as assumed in the text).

Reference no: EM131250008

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