Public service motivation is often considered as an argument for low- powered incentive schemes in the public sector. In this paper, we characterize the optimal contract between a public regulator and an altruistic agent according to the degree of public service motivation, when the type of the...

Most of regulators in health care systems use pooling contracts such that payment do not depend on the level of severity. This policy is motivated by concerns about the moral hazard problem. In this paper, we show that it can be optimal when patient severity is private information because of the...

What determines securitization levels, and should they be regulated? To address these questions we develop a model where originators can exert unobservable effort to increase expected asset quality, subsequently having private information regarding quality when selling ABS to rational investors....

We study comparative statics of Nth-degree risk increases within a large class of problems that involve bidimensional payoffs and additive or multiplicative risks. We establish necessary and sufficient conditions for unambiguous impact of Nth-degree risk increases on optimal decision making. We...

Purpose – This paper focuses on the decision by firms to commit and to invest unilaterally. It is concerned with the intriguing question as to whether unilateral commitments are mechanisms that help a firm manage risks in alliance relationships in a proactive manner....

Strategic alliances are characterized by inherent instability arising from uncertainty regarding a partner’s future behaviour and the absence of a higher authority to ensure compliance. Consequently, when firms adopt these strategies, they are confronted with a relational risk. This paper...

This article shows how management consultant’s daily transgression practices favour semi-confidential information diffusion, which has the effect of improving managers’ strategic decision making. By their marginal transgressions (namely confidentiality rule breaking), consultants act as...

The complexity of the information systems field often lends itself to classification schemes, or taxonomies, which provide ways to understand the similarities and differences among objects under study. Developing a taxonomy, however, is a complex process that is often done in an ad hoc way. This...