There are 2 workers in a team. Each can either work hard or shirk. If both workers shirk, the overall project succeeds w

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answerhappygod
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There are 2 workers in a team. Each can either work hard or shirk. If both workers shirk, the overall project succeeds w

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There are 2 workers in a team. Each can either work hard or shirk. If both workers shirk, the overall project succeeds with probability p0, if only one worker shirks, it succeeds with probability p1, and if both workers work hard, it succeeds with probability p2. (p2>p1>p0) The cost of effort is c. The principalcannot observe the individual efforts, but only the success or failure of the whole project. Design the optimal contract that induces all the workers the exert effort all the time. Do the workers’ efforts complement or substitute each other (classify the probabilities of success to answer this question)?
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