We have a market in which workers choose between working as an academic or as an entrepreneur. A worker's productivity as an academic (the revenue generated for the college), O, is private information. Colleges view workers' productivity as academics as a random variable that is uniformly distributed on the interval [0, 1]. Good academics are bad entrepreneurs and vice versa. Specifically, a worker with productivity as an academic & would earn f(8) an entrepreneur, where f(8) = 1-8. Colleges pay academics a wage Wand the market is competitive. Universities and workers are risk- neutral expected utility maximisers. Give an explanation and derive the competitive equilibrium of this market. Discuss the equilibrium's properties and what policy intervention, if any, might be appropriate.