Total # Posts: 1
A firm and a worker interact as follows. First, the firm can make 2 contract offers (wage, jobtype): (w, z=0) and (w, z=1) where z=0 denotes the "safe" job and z=1 denotes the "risky job. After observing the firm's contract offer(w,z) the worker accepts or ...
January 31, 2008