Benito Arruñada - Universitat Pompeu Fabra
Materiales docentes / Teaching Materialss
6.e.5. Ethical interest rate. Ref. 0213
Moralists claim that ethical standards are decreasing. Might this be caused by a fall in the relevant discount rate?
(a) Show why, using a model of self-enforcement based on quasi-rents.
(b) Is this model correct for analyzing this problem?