Explain why such a small percentage of employees would actively look for alternative jobs when they are secure in their employment. Additionally, consider employees who are informed that they might lose their job shortly. Considering that the potential job loss is not based on performance but is based rather on structural conditions of the firm, they might expect to earn more upon finding a new job. What does the endowment effect have to say regarding how the employee values the outcome of the job hunt before and after finding their new job?
Explain why such a small percentage of employees would actively look for alternative jobs when they are secure in their employment. Additionally, consider employees who are informed that they might lose their job shortly. Considering that the potential job loss is not based on performance but is based rather on structural conditions of the firm, they might expect to earn more upon finding a new job. What does the endowment effect have to say regarding how the employee values the outcome of the job hunt before and after finding their new job?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Explain why such a small percentage of employees would actively look for alternative jobs when they are secure in their employment. Additionally, consider employees who are informed that they might lose their job shortly. Considering that the potential job loss is not based on performance but is based rather on structural conditions of the firm, they might expect to earn more upon finding a new job. What does the endowment effect have to say regarding how the employee values the outcome of the job hunt before and after finding their new job?
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