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Shannon Had to Write a Letter to a Job Applicant

question 108

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Shannon had to write a letter to a job applicant, telling him that he was not selected for a position.Because she really liked the applicant, in the rejection letter she wrote, "I thought you were our top candidate." What has Shannon done that might lead to legal difficulties?


Definitions:

Homothetic Preferences

Consumer preferences that are consistent or proportionate across different scales or levels of consumption, indicating a straight line through the origin in a utility function graph.

Quasilinear Preferences

Preferences where utility is a linear function of one good, making the consumer's marginal rate of substitution between goods independent of the level of consumption of that good.

Convex Preferences

Consumer preferences where the consumer prefers averages or mixes of goods to extremes, represented graphically by convex indifference curves.

Monotonic Transformation

A monotonic transformation involves a function that either entirely increases or decreases, preserving the order of the original function’s elements.

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