Gagnepain, Phillippe; Ivaldi, Marc; Martimort, David - Departamento de Economía, Universidad Carlos III de Madrid - 2009
We construct and estimate a structural principal/agent model of contract renegotiation in the French urban transport sector in a context where operators are privately informed on their innate costs (adverse selection) and can exert cost-reducing managerial effort (moral hazard). This model...