Sumo wrestling tournaments typically have 66 wrestlers. Each wrestles 15 matches. A wrestler who has a winning

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Sumo wrestling tournaments typically have 66 wrestlers. Each wrestles 15 matches. A wrestler who has a winning record (eight wins or more) is guaranteed to rise in the official rankings; a wrestler with a losing record falls in the rankings. Suppose the last match of a tournament is between Wrestler A, who has won eight matches so far and Wrestler B, who has won seven. If moral hazard is a serious problem in sumo wrestling, who do you think is more likely to win this match?
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Microeconomics

ISBN: 978-1292079578

Global Edition 1st Edition

Authors: David Laibson, John List

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