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Fernandez Rodrik (1991) - Resistance To Reform Status Quo Bias In The Presence Of Individual Specific Uncertainty (view source)
Revision as of 21:25, 26 May 2010
, 21:25, 26 May 2010no edit summary
Then, as workers are ex-ante identical, a worker will decide to incur the fixed cost <math>\theta\,</math> iff:
:<math>(\tilde{w}_x - \tilde{w}_y)F(\tilde{c}) - \int_{\underline{c}}^{\overline{c}} f(c) c dc -\theta \ge 0\,</math>
This is:
:<math>\tilde{c}F(\tilde{c}) - \int_{\underline{c}}^{\overline{c}} f(c) c dc -\theta = 0\,</math>
