I need the answer quickly Question 1: Publish or PerishA newly minted Ph.D. who starts a tenure-track assistant professor job (player 1) is one of two types: high-ability (0H) or low-ability (0L), where 0H > OL > 0. The assistant professor knows his type, but the departmentthat hires him (player 2) knows only that he has high ability with probability p < . The assistant professorfirst chooses how hard to work, which is effectively how many papers (q) to publish in period 1 (the pre-tenureperiod). After observing how many papers the assistant professor published, the department decides whetherto grant him tenure (T) or not to do so (N). If the department chooses to grant tenure then the assistantprofessor's payoff is v1(q, T|0) = V – %, where V is the value of being tenured. The department's payoff is 1 ifit tenures a high ability type and -1 if it tenures a low ability type. If the department denies tenure, it gets apayoff of 0 and the assistant professor's payoff is vi (q, N|0) = -. Denote by µ(g) the department's belief thatthe professor is a high-ability type given that he published q papers.(a) Characterize the perfect Bayesian separating equilibria using the parameters of the game.(b) If there is more than one separating perfect Bayesian equilibrium, what is the smallestnumber of papers that an assistant professor needs to publish in order to get tenure?

A Perfect Bayesian equilibrium (PBE) is a concept in recreation theory that captures a kingdom of…

Answered: Derfect Bayesian equilibrium

Business

Economics

Derfect Bayesian equilibrium

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.9P

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