Contract curve and linear risk tolerance. (a) Show that the contract curve will be a straight line if both individuals have identical probability beliefs and the same type of linear risk tolerance....

Contract curve and linear risk tolerance. (a) Show that the contract curve will be a straight line if both individuals have identical probability beliefs and the same type of linear risk tolerance. (b) What is the shape of the contract curve if both individuals have (i) constant absolute risk aversion, (ii) constant and equal relative risk aversion. (c) What is its shape if one of them is risk neutral and the other has LRT preferences?