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Think of the worker's problem as choosing a decision rule that specifies whether to accept or reject a job as a function of the wage
Think of the worker's problem as choosing a decision rule that specifies whether to accept or reject a job as a function of the wage oered. Formally, let the worker's decision rule be represented by a function g : {wL, wH} ! {0, 1}, where "1" denotes "accept the job Due by 10:30 am on October 2. 6 oer" and "0" denotes "reject the job oer". Intuitively, if the worker chooses g (wL) = 0 and g (wH) = 1, then this means the worker's decision rule specifies to reject any job oer to work for wage wL and to accept any job oer to work for wage wH. List all the possible decision rules an unemployed worker may follow. Hint: Notice you can represent each decision rule by just two numbers, i.e., (g (wL) , g (wH)) 2 {0, 1}{0, 1}
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