Consider the job-market signaling model analyzed in this chapter. Would an education be a useful signal of the worker's type if the types had the same education cost? Explain your answer ?
Compute the PBE of the job-market signaling model under the assumption that the worker is a high type with probability 1/2 and a low type with probability 1/2 (rather than probabilities of 1/3 and 2/3 as assumed in the text).