Think of the market in which employees choose between working as an academic or as an entrepreneur. An employee's own productivity as an academic (the revenue generated for the College), , is private information. Colleges view the employees productivity as academics as a random variable that is uniformly distributed on the interval [0,1]. Good entrepreneurs are bad academics, and vice versa. More precisely, an employee with productivity as an academic would earn f() as an entrepreneur, where f()=1. Colleges pay academics a wage w and the market is competitive. Colleges and employees are risk-neutral expected utility maximisers. Explain and derive the competitive equilibrium of this market. Discuss the equilibrium's properties and what policy intervention, if any, might be appropriate