Cole, Harold L.; Krueger, Dirk; Mailath, George J.; … - 2023
sharing arrangement. Coalitions form to insure against idiosyncratic income risk. Self-enforcing contracts for both the … "trust". We treat the contracting conditions of original and deviation coalitions symmetrically and show that higher trust … tightens incentive constraints since it facilitates the formation of deviating coalitions. As a consequence, although trust …