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We study a model of efficient risk sharing between two agents, A and B, who enjoy a non-durable common good. Only agent B can provide the common good whereas agent A can merely contribute indirectly by making transfers to the provider, agent B. We consider self-enforcing equilibria in the...
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This paper examines the consequences of child support enforcement on custodial mothers' consumption decisions. We model the interaction in separated couples as a repeated game between the noncustodial father and the custodial mother who share a common good: the child. The mother exclusively...
Persistent link: https://www.econbiz.de/10005013912
This paper studies the provision of a public good between two agents under lack of commitment and applies it to the problem of children's consumption in separated couples, where children are considered to be public goods. The custodial mother controls the child's consumption, whereas the father...
Persistent link: https://www.econbiz.de/10005013913
How is cooperation without immediate reciprocity sustained in a long term relationship? We study the case of two players in continuous time who have privately observable opportunities to provide favors, and where the arrival of these opportunities is a Poisson process. Favors provided by a...
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