Sol ps5 290 2017 econ 290 - Study guides, Class notes & Summaries
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Solutions: Problem Set 5 ECON 290, Models of Choice in Competitive MarketsSol-PS5-290 ECON 290|all you need
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Solutions: Problem Set 5 
ECON 290, Models of Choice in Competitive Markets 
Jean Guillaume Forand∗ 
Winter 2017, Waterloo 
1. An unemployed worker has a job offer with wage w. She has also applied to another job, 
which would offer a wage of w > w. However, the worker must accept or decline the first 
firm’s offer before she hears back from the second firm. The worker is also entitled to an 
unemployment benefit u as long as she stays unemployed. 
(a) Describe the set of consequences tha...
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