When does limited commitment matter in a production economy?

When does limited commitment matter in a production economy?

We investigate the conditions under which the first-best allocation without commitment is sustainable in a production economy. While it is widely known in the literature that allowing capital accumulation creates a distortion, we find that it can help to sustain the first-best allocation. We also find t...

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Bibliographic Details
Main Authors: CHOI, Kyoung Jin, LEE, Jungho
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2018
Subjects:
Limited Commitment
Enforcement Constraints
First-best Allocation
Production Economy
Industrial Organization
Online Access:https://ink.library.smu.edu.sg/soe_research/2058
https://ink.library.smu.edu.sg/context/soe_research/article/3057/viewcontent/sustainability20180528.pdf
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Institution: Singapore Management University
Language: English

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https://ink.library.smu.edu.sg/soe_research/2058
https://ink.library.smu.edu.sg/context/soe_research/article/3057/viewcontent/sustainability20180528.pdf

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