Difference between revisions of "BPP Field Exam 2010 Answers"
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* The prompt does not explicitly say that everyone must receive the same share. Nonetheless, many of the relevant papers assume that this is the case. As such, will solve the problem both ways. | * The prompt does not explicitly say that everyone must receive the same share. Nonetheless, many of the relevant papers assume that this is the case. As such, will solve the problem both ways. | ||
* The prompt also does not explicitly require a balanced budget. However, no source of funding for the agents is mentioned besides the combined output V of the individual agents. As such, I will assume that the budget balance restriction must hold. | * The prompt also does not explicitly require a balanced budget. However, no source of funding for the agents is mentioned besides the combined output V of the individual agents. As such, I will assume that the budget balance restriction must hold. | ||
| + | * The prompt does not explicitly state that decisions are made non-cooperatively or without transfers between employees, but I will assume that neither of these are feasible. | ||
(a) <i>My answer, assuming that some shares can be different</i>. | (a) <i>My answer, assuming that some shares can be different</i>. | ||
Revision as of 19:36, 28 March 2011
- This page is included under the section BPP Field Exam
- This page is provides answers to the BPP Field Exam 2010
Question B1: Production in Teams
Relevant papers:
- Holmstrom (1982), Moral Hazard in Teams. Not on exam's reading list.
- Holmstrom (1999), Firm as Subeconomy, Not on exam's reading list.
Question B1.1
Notes about assumptions:
- The prompt does not explicitly say that everyone must receive the same share. Nonetheless, many of the relevant papers assume that this is the case. As such, will solve the problem both ways.
- The prompt also does not explicitly require a balanced budget. However, no source of funding for the agents is mentioned besides the combined output V of the individual agents. As such, I will assume that the budget balance restriction must hold.
- The prompt does not explicitly state that decisions are made non-cooperatively or without transfers between employees, but I will assume that neither of these are feasible.
(a) My answer, assuming that some shares can be different.
(b) My answer, assuming that all shares must be equal.
Question B1.2
Question B1.3
Question C1: Agenda Control and Status Quo
(i)
(ii)
(iii)
(iv)
