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Common agency equilibria with discrete mechanisms and discrete types
Martimort, David; Stole, Lars A. - 2001
This paper characterizes the equilibrium sets of an intrinsic common agencygame with discrete types and direct revelation mechanisms. After presentinga general algorithm to find the pure-strategy equilibria of this game, we use itto characterize these equilibria when the two principals control...
Persistent link: https://www.econbiz.de/10011400396
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Relational incentive contracts with persistent private information
Malcomson, James M. - 2015 - This version: July 24, 2015
This paper investigates relational incentive contracts with continuous, privately-observed agent types that are persistent over time. With fixed agent types, full separation is not possible when continuation equilibrium payoffs following revelation are on the Pareto frontier of attainable...
Persistent link: https://www.econbiz.de/10011300994
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Optimal contracting with endogenous project mission
Cassar, Lea - 2016
I analyze a model in which a principal offers a contract to an agent and can influence the agent’s marginal return of effort by the choice of the project mission. The principal's and the agents' mission preferences are misaligned, and the agents have unobservable intrinsic motivation levels. I...
Persistent link: https://www.econbiz.de/10011561184
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Do managers with limited liability take more risky decisions? : an information acquisition model
Malcomson, James M. - 2010
Risk-neutral individuals take more risky decisions when they have limited liability. Risk-neutral managers may not when … acting as agents under contract and taking costly actions to acquire information before taking decisions. Limited liability … return. Further results on the form of contracts are also derived. -- managers ; risky decisions ; limited liability …
Persistent link: https://www.econbiz.de/10003937594
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On the optimal use of correlated information in contractual design under limited liability
Danau, Daniel; Vinella, Annalisa - 2018
when the agent is protected by limited liability. In this paper, we investigate how the principal should construct the … globally incentive compatible under limited liability, if local incentive constraints are strictly satisfied. We identify …
Persistent link: https://www.econbiz.de/10011822030
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Contracts and Inequity aversion
Englmaier, Florian; Wambach, Achim - 2002
Using the concept of Inequity Aversion we derive in a Moral Hazard setting several results which differ from conventional contract theory. Our three key insights are: First, inequity aversion plays a crucial role in the design of optimal contracts. Second, there is a strong tendency towards...
Persistent link: https://www.econbiz.de/10011514018
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CEO compensation : evidence from the field
Edmans, Alex; Gosling, Tom; Jenter, Dirk - 2021
We survey directors and investors on the objectives, constraints, and determinants of CEO pay. 67% of directors would sacrifice shareholder value to avoid controversy on CEO pay, implying they face significant constraints other than participation and incentive compatibility. These constraints...
Persistent link: https://www.econbiz.de/10012584217
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How efficient is a contestable natural monopoly?
Weichenrieder, Alfons J. - 1999
This paper considers the efficiency of a contestable natural monopoly if consumers are heterogeneous and the monopolist can differentiate prices imperfectly. With restricted entry, the standard result in this case is that the monopoly offers a menu of price-quantity combinations which leads to...
Persistent link: https://www.econbiz.de/10009781681
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Platform liability and innovation
Jeon, Doh-Shin; Lefouili, Yassine; Madio, Leonardo - 2022
the presence of such products on innovation and consumer welfare. For a given number of buyers, platform liability … interests between innovators and buyers. Furthermore, platform liability can have unintended consequences, which overturn the … intended effect on innovation. Platform liability tends to increase (decrease) innovation and consumer welfare when the …
Persistent link: https://www.econbiz.de/10013384891
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Digital piracy : theory
Belleflamme, Paul; Peitz, Martin - 2010
This article reviews recent theoretical contributions on digital piracy. It starts by elaborating on the reasons for intellectual property protection, by reporting a few facts about copyright protection, and by examining reasons to become a digital pirate. Next, it provides an exploration of the...
Persistent link: https://www.econbiz.de/10008698398