Decisions in the Face of Uncertainty Tania, a student, is trying to decide which of two alternative summer jobs to take. 1. She can work as a house painter and have $2,000 in at the end of the summer and there is no uncertainty about the income from this job. 2.The other job is working as a telemarketer. Tania thinks there is a 50 percent chance that she will earn $5,000 and a 50 percent chance that she will earn $1,000. Which job does she prefer?
Pooling Equilibrium and Separating Equilibrium Without warranties, only one message is visible to the buyer: All cars look the same. The market equilibrium when only one message is available and an uninformed person cannot determine quality is a pooling equilibrium. Private Information