Prove parts (vii), (viii) and (ix) of Proposition 8.15. Data From Proposition 8.15 Proposition 8.15 In the

Prove parts (vii), (viii) and (ix) of Proposition 8.15.

Data From Proposition 8.15

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Proposition 8.15 In the context of the model described above (see Grossman & Stiglitz [849]), the overall equilibrium (*.(du)) satisfies the following properties: (i) if * (0,1), then is increasing with respect to n and decreasing with respect to c and a; (ii) if * = (0,1), then o is constant with respect to changes in or with respect to changes in if n is constant; (iii) if* = (0, 1), then * is increasing with respect to 2, decreasing with respect to c and increasing with respect to if n is constant;