Author Question: What role does information cascade play in job interviews? What will be an ideal ... (Read 74 times)

melina_rosy · **on:** Jun 29, 2018

What role does information cascade play in job interviews?

What will be an ideal response?

Question 2

Do policies that alter the distribution of income also entail a change in property rights?

A) It is impossible to tell because of the uncertainty such policies create.
B) Not if they are confined to changing relative prices.
C) Not if they redistribute income without confiscating anyone's wealth.
D) They do so necessarily.

Joy Chen · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Information cascade plays an important role in job interviews. An employer may look at a candidate's resume and see that he has been unemployed for some time. Even if the interview goes well and the candidate seems well suited for the job, the employer may weigh the information that the candidate has so far been unsuccessful in finding work as a signal that everyone else thinks this worker is unqualified. The employer may then think that he is missing something important in his evaluation of the worker, and may ignore his own positive signals in favor of the information contained in the candidate's unemployment history. He won't offer the interviewee a job, and neither will the next employer. This information cascade prolongs the interviewee's joblessness.

Answer to Question 2

D