Externalities
October 13, 2020
The total demand (marginal benefit) curve for visiting Yellowstone National Park is as follows:
October 13, 2020
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Myson works at a local retail store during the summer college break.During the recruiting process, the human

My son works at a local retail store during the summer college break. During the recruiting process, the human

resources staff at these stores face an information asymmetry problem — they can observe a person’s interpersonal skills during the interviews, and they can talk to former employers to learn about previous experiences. However, they cannot gather full information about current personal characteristics that are important on the job (e.g., work ethic, dedication to customer service, and emotional maturity). For this reason, some job recruiters check the social media posts for top candidates.

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Is this practice unfair? Should employers use this sort of personal information to make decisions about potential work performance?  

 

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