Question 19 (7 points) Economists tend to ask two questions in a bilateral contracting situation: Is the outcome efficient? How are the gains, distributed? a. Suppose that landlords and tenants care only about the expected or average gain from the contract, and not about risk. Comparing a sharecropping contract to a fixed-rent contract: which of these is efficient? Explain. [4 points] b. Now, suppose that tenants lack assets and do not have access to insurance or credit markets. They are therefore in a poor position to bear risk. Can this help explain the persistence of sharecropping contracts? Explain. [3 points]