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expenditure by tying the budget to a linear compensation scheme. The project growth and the power of incentives depend on how the …
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Recent work has shown that, in the presence of moral hazard, balanced budget Nash equilibria in groups are not pareto-optimal. This work shows that when agents misperceive the effects of their actions on the joint outcome, there exist a set of sharing rules which balance the budget and lead to a...
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Recent work has shown that, in the presence of moral hazard, balanced budget Nash equilibria in groups are not pareto-optimal. This work shows that when agents misperceive the effects of their actions on the joint outcome, there exist a set of sharing rules which balance the budget and lead to a...
Persistent link: https://www.econbiz.de/10012476839
I study how the persistence of past choices can be used to create incentives in a continuous time stochastic game in … derive sufficient conditions for a MPE to be the unique PPE. Persistence creates effective intertemporal incentives to … persistence impacts the strength of these incentives …
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