Question: Assume there are 3 types of employees: bad ones, medium ones and good ones. Each employee knows h…

01 May Question: Assume there are 3 types of employees: bad ones, medium ones and good ones. Each employee knows h…

Posted at 14:33h in 2Past Paper by Exams

Assume there are 3 types of employees: bad ones, medium ones and good ones. Each employee knows his/her type but the firms seeking to employ them are not able to determine the type of an employee at the moment of signing the employment contract. At the same time, each employee has a possibility to take a free test that can specify his/her type and this employee will receive a credible certificate for the potential employers stating his/her type. Employees of which type will take the test? If the employee willing to take the test was to pay for it, how would this influence the decisions of the employees? What factors would this decision depend on?

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