Final answer:
The notion that written references are preferred by employers for candidness is false; employers often deal with asymmetric information and value varied methods to gain insights into candidates' attributes.
Step-by-step explanation:
The statement that most employers prefer written references over telephone references because they provide more candid information is false. Employers often face asymmetric information when hiring, which means they cannot know certain key attributes of a job candidate until after hiring. To mitigate this, employers rely on signals like a degree from a specific school, high grades, awards, and references. It is widely believed that telephone references can be more candid and give more nuanced insights into a candidate's energy level, work ethic, and other personal attributes. A potential employer, faced with imperfect information, might tend to trust these more personal, direct sources of information. Additionally, employers may tap into their networks or consider applicants referred by trusted associates, as such referrals often provide a level of reassurance about the candidate's capabilities.