You need to nire some new employees to start your startup venture. Tou now that...
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You need to nire some new employees to start your startup venture. Tou now that potenciar employees are ostroute route poucos follows, but you can't distinguish among them Employee Value Probability $55,000 0.125 $64,000 0.125 573,000 0.125 582,000 0.125 591,000 0.125 $100,000 0.125 5109,000 0.125 5118,000 0.125 The expected value of ning one employees Suppose you set the salary of the position equal to the expected value of an employee. Assume that employees will not work for a salary below the employee value The expected value of an employee who would apply for the position at this is Given this adverse selection, your most reasonable salary offer that ensure you do not lose money
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