e. Suppose the firm offers w 5 w. Notice that the only way the firm can ever know that the worker shirked is if its payoff on a given day is 12w2 rather than (x 2 w), and we have assumed that this happens with probability 11 2 g2 when the worker exerts no effort. Thus, a worker might decide to take a chance and shirk, hoping that the firm will still get payoff of 1x 2 w2 (which happens with probability g2. What is the worker’s immediate payoff (today)

from doing this?