The Risk Premium Hypothesis and Two-•part Tariff Contract Design: Some Empirical Evidence
نویسنده
چکیده
The hypothesis that the fixed component of a share contract serves as a risk premium is tested using a sample of contracts from the motion-pictures industry. The evidence refutes the risk-premium hypothesis under a variety of assumptions about the relative risk averseness of the players. Alternative explanations for the role of a fixed payment in two-part tariff contract design
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