Di Giannatale, Sonia B.; Curiel, Itza; Herrera, Juan; … - Centro de Investigación y Docencia Económicas (CIDE) - 2010
We use Evolutionary Algorithms to approximate the Pareto frontier of a dynamic Principal-Agent model with discrete actions. The Pareto frontier that we obtain is concave, a result that is due to the asymmetry of information between the Principal and the Agent. As we move in the Pareto frontier...