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? . Individual Problems 19-6 You need to hire some new employees to staff your startup venture. You ltnowI that potential employees are distributed throughout
? . Individual Problems 19-6 You need to hire some new employees to staff your startup venture. You ltnowI that potential employees are distributed throughout the population as follows, but you can't distinguish among d1en1: Employee Value Probability $35,000 0.125 $54,000 0.125 $23,000 0.125 $92,000 0.125 $111,000 0.125 $130,000 0.125 $149,000 0.125 $163,000 0.125 The expected value of hiring one employee is . Suppose you set the salary of the position equal to the expected value of an employee. Assume that employees will not work for a salary below their employee value. The expected value of an employee who would apply for the position, at this salary, is . Given this adverse selection, your most reasonable salary offer (that ensures you do not lose money) is V
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