Pausch, Thilo - Institut für Volkswirschaftlehre, Fakultät für … - 2003
techniques from Kraus (1979) and Wong (1996) to go on
in the proof of lemma 1: From (13) one derives by integration by parts:
V …−Uprimeprime(Π∗(˜µ)−˜epsilon1rLL))F(˜epsilon1 | ˜µ)d˜epsilon1
where the equality in the second line of (27) follows from integration by parts and … stochastically dominated from)
F(˜epsilon1 | µ2) to order one.
Using integration by parts, one derives:
integraldisplay
˜epsilon1
A …