Di Giannatale Menegalli, Sonia; Curiel-Cabral, Itza T. Q. - Centro de Investigación y Docencia Económicas (CIDE) - 2013
of the optimal contracts change along the Pareto Frontier, and that compromise solutions implement higher Agent.s e … compromise solutions, compared to the contracts located at the Pareto Frontier.s extremes, the Agent exerts higher e¤ort levels … productivity outcomes as time goes on. When the coe¢ cient of relative risk aversion increases, compromise solutions tend to become …
