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This paper studies the problem of screening teams of either moral or altruistic agents, in a setting where agents choose whether or not to exert effort in order to achieve a high output for the principal. I show that there exists no separating equilibrium menu of contracts that induces the...
Persistent link: https://www.econbiz.de/10012649710
utility is represented by a convex combination of selfish preferences and Kantian morality, or by altruism. In a moral hazard … incentives decreases with the degrees of morality and altruism displayed by the agents, thus leading to increased profits for the …
Persistent link: https://www.econbiz.de/10011771132