Reinterpret the buyer and seller in the double auction analyzed in Section 3.2.C as a firm that knows a worker's marginal product (m) and a worker who knows his or her outside opportunity (v ), respectively, as in Hall and Lazear (1984). In this context, trade means that the worker is employed by the firm, and the price at which the parties trade is the worker's wage, w. If there is trade, then the firm's payoff is m w and the worker's is w; if there is no trade then the firm's payoff is zero and the worker's is v . Suppose that m and v are independent draws from a uniform distribution on [0, 1], as in the text