Difference between revisions of "BPP Field Exam 2007 Answers"
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imported>Bo (→C2 (a)) |
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===C.2: Contracting with and without commitment=== | ===C.2: Contracting with and without commitment=== | ||
====C2 (a)==== | ====C2 (a)==== | ||
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| + | The solution is given by | ||
| + | <math>\max_{t_{H},t_{L},q_{H},q_{L}}[\sum_{i=0}^{\infty}[\delta^{i}(0.5(u(q_{H})-t_{H})+0.5(u(q_{L})-t_{L}))]]</math> | ||
| + | |||
====C2 (b)==== | ====C2 (b)==== | ||
====C2 (c)==== | ====C2 (c)==== | ||
====C2 (d)==== | ====C2 (d)==== | ||
====C2 (e)==== | ====C2 (e)==== | ||
Revision as of 12:49, 12 April 2011
Contents
C.2: Contracting with and without commitment
C2 (a)
The solution is given by [math]\max_{t_{H},t_{L},q_{H},q_{L}}[\sum_{i=0}^{\infty}[\delta^{i}(0.5(u(q_{H})-t_{H})+0.5(u(q_{L})-t_{L}))]][/math]
