Kirkegaard, René - In: Theoretical economics : TE ; an open access journal in … 12 (2017) 1, pp. 25-51
A new approach to moral hazard is presented. Once local incentive compatibil- ity is satis?ed, the problem of verifying global incentive compatibility is shown to be isomorphic to the problem of comparing two classes of distribution functions. Thus, tools from choice under uncertainty can be...