Context

Focus will be to think through what asymmetric information, moral hazard, and adverse selection have to do with hiring a police officer.

Activity

Consider the following statement:

• Many police officer positions require the applicant to have a college degree even though the tasks of a police officer rarely call upon college course material.

Address the following:

• Speculate on whypolice departments do not increase their applicant pool by dropping this requirement and how asymmetric information, moral hazard, and adverse selection are involved?