Reap and Weep: A farmer owns some land that he can farm to produce crops. Farming output depends on the talent of the farmer. The farmer knows his talent, but the rest of the world knows only that a farmers talent is uniformly distributed: [0, 1]. The farmers payoff from farming his land is equal to his talent . Before setting up his farm, the farmer approaches the local manufacturing plant and offers to work on the production line. The farmer can ask the plant owner for any wage w 0, and the owner can reject (R) or accept (A) the offer. If the owner rejects the offer then the farmer must return home and settle into his farming. If the owner accepts the offer then the farmers payoff is the wage w, while the owners payoff is given by the net value 23 w, and this is common knowledge.