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BPP Field Exam 2010 Answers (view source)
Revision as of 18:36, 28 March 2011
, 18:36, 28 March 2011no edit summary
* 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) <i>My answer, assuming that some shares can be different</i>.
