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design I prove in the paper, that government - as principal - is only capable of applying "perverse" incentives towards the …
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. However, when the type of the borrowers is not observable, then standard borrowers have incentives to invest in ethical …
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satisfy because of the different kinds of incentives to be managed and the overall trade-off between rent extraction …
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We study the optimal dynamics of incentives for a manager whose ability to generate cash .ows changes stochastically … with time and is his private information. We show that, in general, the power of incentives (or "pay for performance") may … power of incentives later in the relationship. Our results follow from a new variational approach that permits us to tackle …
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E-commerce and FinTech are currently booming in China. The growing consumer market is accompanied by internet finance, by which consumers can easily borrow money from financial institutions online. As a result, the growing risks of financial institutions are of concern to the government and...
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This paper studies a contracting problem where agents' cost of actions is private information. With two actions, this leads to a two-dimensional screening problem with moral hazard. There is a natural one-dimensional ordering of types when there is both adverse selection and moral hazard....
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