Final answer:
Employers use education credentials, such as degrees from reputable schools and high GPAs, as well as references and work history, to screen job candidates and gather information to overcome challenges related to imperfect information.
Step-by-step explanation:
To verify facts and screen a signer, such as a job applicant, an employer may use a variety of strategies to ensure they are hiring a quality employee and mitigate the risks associated with imperfect information. Trade schools and colleges often act as a preliminary filter, certifying the credentials of the candidates. Moreover, an employer may require a degree from a particular school or focus on candidates with high grade point averages and awards as indicators of a candidate’s capabilities and work ethic.
In addition to academic achievements, employers often request references from former employers or mentors to gain insights into key personal attributes such as motivation, punctuality, and interpersonal skills. Through these methods, an employer aims to reduce the uncertainty that accompanies hiring decisions and increase the likelihood of securing a productive and reliable employee.
Employers may also pay attention to the applicant's previous work history, looking for evidence of long-term employment and career progression as signs of stability and growth. Personal interviews and assessment tests can further screen for the desired attributes, providing more direct evaluation opportunities.