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Incumbent legislators have one unit of effort to use oneither 'constituents' () or personal 'leisure' ). The action space is continuous, i.e. the legislator canmake
Incumbent legislators have one unit of effort to use oneither 'constituents' () or personal 'leisure' ). The action space is continuous, i.e. the legislator canmake and any number between '0' and '1' . Formally,and . Assume legislators use the whole unit of effort,such that . The legislator's utility function is . Use the fact that to find the allocation of and whichmaximize 's utility
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Managerial Economics and Business Strategy
Authors: Michael Baye, Jeff Prince
8th edition
9780077802615, 73523224, 77802616, 978-0073523224
