We consider a simple model of competition under moral hazard with constant return technologies. We consider preferences that are not separable in effort: Marginal utility of leisure is assumed to increase with income, especially for high income levels. We show that, in this context, Bertrand...

We characterize the equilibrium manifold of an economy when initial endowments can be individually observed. We adopt a local, "differentiable" perspective. We derive necessary and sufficient conditions that characterize the equilibrium manifold, and we show that, if these conditions are...