Question

Nina is in an interview for a sales job that requires no experience. She is trying to portray herself as a highly enthusiastic, energetic person with high-level communication and interpersonal skills. The interviewer is convinced that Nina should be hired as a salesperson in the company. However, in her resume, Nina had not mentioned her previous work experience as she was fired from that job because of her frequent absenteeism. Which of the following does this scenario best illustrate?

A. information asymmetry
B. principal-agent problem
C. experience-curve effect
D. learning-curve effect

Answer 1

The answer is A

Step-by-step explanation:

Let re-visit the definition of information asymmetry before we further investigate the scenario. Information asymmetry describes the situation when the two parties are negotiating and one of them have more relevant information/knowledge that helps he/she gains competitive advantages in negotiation over the other party.

In the described scenario, the information that Nina has been fired from her previous job mainly because of her fault rather than any other objective reasons is of much importance for the interviewer's decision-making in term of hiring Nina. Did the interviewer know this piece of information, he/she may not hire Nina or the negotiating salary level would be pretty much lower.