given period, after having observed her income, the agent can walk away from the contract, while the intermediary cannot, i … can be provided because in an equilibrium contract an up-front payment e.ectively locks in the agent with an intermediary …. We then show that our contract economy is equivalent to a consumption-savings economy with one-period Arrow securities …

given period, after having observed her income, the agent can walk away from the contract, while the intermediary cannot, i … can be provided because in an equilibrium contract an up-front payment effectively locks in the agent with an intermediary …. We then show that our contract economy is equivalent to a consumption-savings economy with one-period Arrow securities …