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We evaluate the stability of risk-sharing contracts in the presence of moral hazard. Contracts are rules for sharing … their choice and apply methods of evolutionary stability. We identify stable contracts, which survive competition against …
Persistent link: https://www.econbiz.de/10005132862
This paper presents a simple repeated-game model of interaction between the government and the private sector where, at each repetition, the government first makes a non-binding announcement about its future actions. The private sector, unsure whether or not this announcement will be respected,...
Persistent link: https://www.econbiz.de/10005706739