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- W1574928739 abstract "Computing Private Information Equilibria: Moral Hazard in an Indian Village Ethan Ligon University of California, Berkeley ethanOare.berkeley.edu June 1995 Introduction Simulata is the name I've given to an imaginary village, modelled very loosely after the I C R I S A T villages i n India. The life of the inhabitants of Simulata is pretty simple; all they ever do is grow grain and eat i t . T h e y do this every period, forever. The sole inputs to grain production are land and labor, and output is uncertain. Since the inhabitants of Simulata don't like risk, they have an incentive to t r y to reduce the risk they face by pooling their output. For simplicity, we'll suppose that the (risk neutral) village chief acts as an intermediary. In each period, the denizens of Simulata first go work i n their fields, applying some level of effort a, producing some random output q which they give to the village chief. The chief in turn piles up the entire output of the village, and gives some grain back to each * T h i s work is h i g h l y preliminary, and its a u t h o r docs not yet take i t very seriously as a model of an a c t u a l v i l l a g e economy. N e i t h e r should the reader. T h c i n f i n i t e h o r i z o n assumed here is not i n any way essential to the results. A s s u m i n g an infinite h o r i z o n docs reduce the d i m e n s i o n of the p r o b l e m , however. l r" @default.
- W1574928739 created "2016-06-24" @default.
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- W1574928739 date "1995-06-01" @default.
- W1574928739 modified "2023-09-27" @default.
- W1574928739 title "Computing Private Information Equilibria: Moral Hazard in an Indian Village" @default.
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