Renou, Ludovic; Carlier, Guillaume - In: Economics Bulletin 7 (2003) 5, pp. 1-9
This note gives a simple proof of the existence and monotonicity of optimal debt contracts in simple models of borrowing and lending with ex-post asymmetric information, risk-averse agents and heterogeneous beliefs. Our argument is based on the concept of nondecreasing rearrangement and on a...
