Common use of Proposition Clause in Contracts

Proposition. For any two consecutive periods, we have: b — e — a (2 — w ) xt + a ∑ y 0 = δ b — e — a (2 — w ) xt+1 i =1 The marginal social surplus increases more than exponentially in time. The speed is particularly large when ∑i—1 y 0 is large i =1 i

Proposition. For any two consecutive periods, we have: b — e — a (2 — w ) xt + a ∑ y 0 = δ b — e — a (2 — w ) xt+1 i =1 The marginal social surplus increases more than exponentially in time. The speed is particularly large when ∑i—1 y 0 is large i =1 ii The outcome is first best if n = 1

Proposition. For any two consecutive periods, we have: b — e — a (2 — w ) xt + a ∑ y 0 = δ b — e — a (2 — w ) xt+1 i =1 The marginal social surplus increases more than exponentially in time. The speed is particularly large when ∑i—1 y 0 is large i =1 i.