We develop a two-period general equilibrium model of portfolio delegation with competitive, differentially skilled managers and convex compensation contracts. We show that convex incentives lead to significant equilibrium mispricing, but reduce price volatility. In particular, price...

This chapter surveys studies that have used the methods of mechanism design, optimal taxation, nonlinear pricing, and principal-agent analyses in the analysis of agricultural policy. The optimal design and reform of agricultural policy are studied under the presumption that agricultural...