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I study a problem of repeated moral hazard in which the effect of effort is persistent over time: each period's outcome distribution is a function of a geometrically distributed lag of past efforts. I show that when the utility of the agent is linear in effort, a simple rearrangement of terms in...
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We report on several experiments on the optimal allocation of ownership rights. The experiments confirm the property … the most efficient ownership allocation despite starting from different initial conditions. However, in contrast to the …
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