Starting Small and Commitment
COWLES FOUNDATION FOR RESEARCH IN ECONOMICS AT YALE UNIVERSITY Box 2125, Yale Station New Haven, Connecticut 06520
COWLES FOUNDATION DISCUSSION PAPER NO. 1217
Note: Cowles Foundation Discussion Papers are preliminary materials circulated to stimulate discussion and critical comment. Requests for single copies of a Paper will be filled by the Cowles Foundation within the limits of the supply. References in publications to Discussion Papers (other than mere acknowledgment by a writer that he has access to such unpublished material) should be cleared with the author to protect the tentative character of these papers.
STARTING SMALL AND COMMITMENT Joel Watson May 1999
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COWLES FOUNDATION DISCUSSION PAPER NO. 1217
Note: Cowles Foundation Discussion Papers are preliminary materials circulated to stimulate discussion and critical comment. Requests for single copies of a Paper will be filled by the Cowles Foundation within the limits of the supply. References in publications to Discussion Papers (other than mere acknowledgment by a writer that he has access to such unpublished material) should be cleared with the author to protect the tentative character of these papers.
STARTING SMALL AND COMMITMENT Joel Watson May 1999
5|@h|?} 54@** @?_ L44|4i?| aLi* `@|tL? Th* bc bbb
Devwudfw L vwxg| d prgho ri d orqj0whup sduwqhuvkls zlwk wzr0vlghg lqfrpsohwh lqirupdwlrq1 Wkh sduwqhuv mrlqwo| ghwhuplqh wkh vwdnhv ri wkhlu uhodwlrqvkls dqg lqglylgxdoo| ghflgh zkhwkhu wr frrshudwh zlwk ru ehwud| hdfk rwkhu ryhu wlph1 L fkdudfwhul}h wkh h{wuhpdo lqwhulp lqfhqwlyh hflhqw htxloleuld1 Lq wkhvh htxloleuld/ wkh sduwqhuv jhqhudoo| _vwduw vpdoo/% zlwk wkh ohyho ri lqwhudfwlrq jurzlqj ryhu wlph1 Wkh w|shv ri sod|huv vhsdudwh txlfno|1 Ixuwkhu/ frrshudwlrq ehwzhhq _jrrg% w|shv lv yldeoh uhjdugohvv ri krz shvvlplvwlf wkh sod|huv duh derxw hdfk rwkhu lqlwldoo|1 Wkh txlfn qdwxuh ri vhsdudwlrq lq dq h{wuhpdo htxloleulxp frqwudvwv zlwk wkh rxwfrph vhohfwhg e| d vwurqj uhqhjrwldwlrq fulwhulrq +dv vwxglhg lq Zdwvrq ^44`,1 Mrxuqdo ri Hfrqrplf Olwhudwxuh Fodvvlfdwlrq Qxpehuv= F:5/ F:6/ G:71
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