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that those inferences "make sense."
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By make sense I mean that they're consistent with
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what actually is happening in equilibrium.
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So before we get too nerdy about that
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let's just think why that's a sensible thing to require.
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Suppose, in fact, suppose the world was like this.
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All good workers got MBA's, all bad workers did not get MBA's,
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and employers thought that the people who got MBA's
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were half good and half bad.
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That just doesn't sound right, right?
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If in fact it's the case,
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that it's the good workers who are getting MBA's