{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-21T07:13:48-04:00", "answer_date": "2024-06-21 07:13:48", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "3415207", "url": "\/study-help\/questions\/e-an-alternative-way-to-deal-with-contractual-incompleteness-is-3415207", "question_creation_date_js": "2024-06-21T07:13:48-04:00", "question_creation_date": "Jun 21, 2024 07:13 AM", "meta_title": "[Solved] e) An alternative way to deal with contra | SolutionInn", "meta_description": "Answer of - e) An alternative way to deal with contractual incompleteness is to rely on contingent renewal. Consider the following | SolutionInn", "meta_keywords": "alternative,deal,contractual,incompleteness,rely,contingent,renewal,employer,hire,hard-working,high,productivity", "question_title_h1": "e) An alternative way to deal with contractual incompleteness is to rely on contingent renewal. Consider the following: an employer wants to hire a hard-working", "question_title": "e) An alternative way to deal with contractual incompleteness is to rely", "question_title_for_js_snippet": "e) An alternative way to deal with contractual incompleteness is to rely on contingent renewal Consider the following an employer wants to hire a hard working (high productivity) employee in return for a wage (w) The employee is able to control how hard he works on the job He can choose to supply high effort ( ) or low effort ( ) The probability that he is caught shirking on the job is A If he is caught shirking, his contract is terminated, and he has to claim UIF This fallback income is given by g Solve for the Nash equilibrium wage S f) How (and why) is this equilibrium different to the market clearing equilibrium 8 ", "question_description": "\"image
\"image<\/div><\/div><\/div> e) An alternative way to deal with contractual incompleteness is to rely on contingent renewal. Consider the following: an employer wants to hire a hard-working (high productivity) employee in return for a wage (w). The employee is able to control how hard he works on the job. He can choose to supply high effort (@) or low effort (@). The probability that he is caught shirking on the job is A. If he is caught shirking, his contract is terminated, and he has to claim UIF. This fallback income is given by g. Solve for the Nash equilibrium wage. [S] f) How (and why) is this equilibrium different to the market-clearing equilibrium? [8]", "transcribed_text": "", "related_book": { "title": "Financial Accounting in an Economic Context", "isbn": "9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292", "edition": "8th Edition", "authors": "Jamie Pratt", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/61.jpg", "uri": "\/textbooks\/financial-accounting-in-an-economic-context-8th-edition-61", "see_more_uri": "" }, "free_related_book": { "isbn": "1452107203", "uri": "\/textbooks\/blog-inc-blogging-for-passion-profit-and-to-create-community-1st-edition-978-1452107202-221068", "name": "Blog Inc Blogging For Passion Profit And To Create Community", "edition": "1st Edition" }, "question_posted": "2024-06-21 07:13:48", "see_more_questions_link": "\/study-help\/questions\/business-human-resource-management-2020-May-22", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/if-a-and-b-are-sets-show-that-a-", "description": "If A and B are sets, show that A B if and only if A B = A.", "stars": 3 }, { "url": "\/study-help\/accounting-information-systems\/briefly-explain-what-is-meant-by-share-percentage-using-recycling-1311704", "description": "Briefly explain what is meant by share percentage using recycling as an example.", "stars": 3 }, { "url": "\/study-help\/psychology\/are-the-hours-flexible-or-set-1980554", "description": "Are the hours flexible or set?", "stars": 3 }, { "url": "\/the-preceding-problem-was-an-artificial-model-for-the-charging", "description": "The preceding problem was an artificial model for the charging capacitor, designed to avoid complications associated with the current spreading out over the surface of the plates. 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