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→What problems might arise in this quantitative analysis?
===What problems might arise in this quantitative analysis?===
Unfortunately the data mentioned above probably does not exist. Even if it did, one might wonder why an agent (and we researchers) would know about his improved outside options without his employers ever knowing about it.
The types of events that would lead an agent to change careers (starting a new business, marrying into a rich family, etc) are often observable in a social context and are likely to be known by their employers (the merchants).
If the merchants knew that the infinite horizon was about to end, they would respond by no longer hiring the agent -- since the agent no longer has incentives for good behavior.
