Fershtman, Chaim (contributor); Weiss, Yoram (contributor); … - 2001 - [Elektronische Ressource]
of a firm employing two workers, say 1 and 2.The
associated Lagrangian is
L = E(π)+λ
1
[E(u
1
)−r
1
]+λ
2
[E(u
2
)−r
2 … heterogenous firm depends
on his expected wage, his expected local status and the cost of effort he exerts:
E(u
1
)=E(w
1
)+βE(w
1 …
an heterogenous firm.
∆E(u
1
)=E(u
1
)−
1
2
t
2
1
(17)
=
1
2
(2β + β
2
)t
2
1
−
β(2 + 3β)t
2
2
2(1 + 2β)
.
Heterogenous …