Competitive equilibrium with moral hazard in economies with multiple commodities

Alessandro Citanna and Antonio Villanacci ()

GSIA Working Papers from Carnegie Mellon University, Tepper School of Business

Abstract: We study an economy with competitive commodity markets and exclusive pairwise contractual relations with moral hazard, where both the principal and the agent can be risk averse. We show existence of equilibria and their generic constrained suboptimality,

Date: 1997-12
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Journal Article: Competitive equilibrium with moral hazard in economies with multiple commodities (2002)
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