BPP Field Exam 2007 Answers
Revision as of 11:49, 12 April 2011 by imported>Bo (→C2 (a))
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]
