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Unformatted text preview: It costs nothing to obtain the land. How much land to use: as much as possible. Never lose by taking more land. (Infinite demand) 1, Competitionall units are equal. 2, Costless contracts---every form of contracting is as difficult to negotiate and implement 3, Certainty----by 1970, you cannot model sharecropping unless you give up one of the above condition Agricultural Ladder: Absentee landlord: Cash rental :with no risk Fired wage : 100% risk Competition retries monopoly. Agency- Principal: agent model. Agent:. E.G. Lawyer and doctor. Worker is the agent the landlord is the principal....
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This note was uploaded on 09/21/2011 for the course ECON 499 taught by Professor Tba during the Spring '11 term at UChicago.
- Spring '11