Explain why such a small percentage of employees would actively look for alternative jobs when they are secure in their employment. Additionally, consider employees who are informed that they might lose their job shortly. Considering that the potential job loss is not based on performance but is based rather on structural conditions of the firm, they might expect to earn more upon finding a new job. What does the endowment effect have to say regarding how the employee values the outcome of the job hunt before and after finding their new job?

Explain why such a small percentage of employees would actively look for alternative jobs when they are secure in their employment. Additionally, consider employees who are informed that they might lose their job shortly. Considering that the potential job loss is not based on performance but is based rather on structural conditions of the firm, they might expect to earn more upon finding a new job. What does the endowment effect have to say regarding how the employee values the outcome of the job hunt before and after finding their new job?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 37P

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