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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 21:26, 26 May 2010
, 21:26, 26 May 2010no edit summary
*<math>\tilde{w}_x - \tilde{w}_y\,</math> increases
*To start with no individual will choose to undertake the general investment cost
*The value of <math>\tilde{c}\,</math> increases as <math>\frac{d\tilde{c}}{dP} = \frac{d\tilde{w}_x}{dP} = \frac{1}{a_x}\,</math>
*The decision to undertake <math>\theta\,</math> (above) is increasing in <math>P\,</math>
*At a sufficiently high <math>P^*\,</math> all <math>Y\,</math> sector individuals are indifferent between investing in <math>\theta\,</math>
