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Consider a principal - agent problem with three exogenous states of nature, s 1 , s 2 and s 3 ; the agent can exert

Consider a principal-agent problem with three exogenous states of nature, s1, s2 and s3; the
agent can exert two eort levels, aL and aH; and two possible output levels, distributed as
follows as a function of the state of nature and the eort level

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