Optimal dynamic risk sharing when enforcement is a decision variable
نویسندگان
چکیده
منابع مشابه
Optimal dynamic risk sharing when enforcement is a decision variable
Societies provide institutions that are costly to set up, but able to enforce longrun relationships. We study the optimal decision problem of using self-governance for risk sharing or governance through enforcement provided by these institutions. Third-party enforcement is modelled as a costly technology that consumes resources, but permits the punishment of agents who deviate from ex-ante spec...
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ژورنال
عنوان ژورنال: Journal of Economic Theory
سال: 2007
ISSN: 0022-0531
DOI: 10.1016/j.jet.2006.03.002