DeWeaver, Mark A.; Roumasset, James A. - Department of Economics, University of Hawaii-Manoa - 2002
We show that Stiglitz's (1974) classic principal-agency theory of share tenancy does not imply, as alleged, that the optimal tenant share is less than one for risk-averse tenants nor that the share decreases monotonically with the tenant's inherent risk aversion. Tenants may self insure by...