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Joan, a Landscaper, Has Hired Devin to Help Maintain the Lawns

question 4

Essay

Joan, a landscaper, has hired Devin to help maintain the lawns under her care. They will be working in different locations, and Joan cannot monitor Devin's performance. If Devin works hard, Joan earns profit of $1,000 and Devin makes $100. If Devin does not work hard and Joan still pays a fixed wage, each makes $300. If Devin works hard and Joan pays him per lawn, she will earn $700 and Devin will make $200. Finally, if Devin does not work hard but Joan pays him per lawn, she makes $500 and he makes $150. Set up the game in extensive form and solve for the expected outcome of this principal-agent game.


Definitions:

Careless

Lacking attention to detail or consideration, often leading to mistakes or accidents.

Résumé

A document summarizing an individual's work history, education, skills, and accomplishments, typically used in job applications to showcase qualifications.

Extensive References

A broad range of sources or citations used to support information or viewpoints.

Effective Networking

The skill of building and maintaining professional or social connections to exchange information, resources, and support.

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