We consider a general framework of optimal contract design under the heterogeneity and short-termism of agents. Our research shows that the optimal contract must weigh the agent's information rent, incentive cost, and benefit to overcome the contract's adverse selection and moral hazards. Agents...

Previous studies show that individual investors play a dominant role in China's stock market. Their behavior of chasing-rise being stronger than killing-fall leads to asymmetry of feedback trading. Our article investigates how mutual funds react to this market force. Using China's stock and fund...

Under the bounded rationality assumption, a principal rarely provides an optimal contract to an agent. Learning from others is one way to improve such a contract. This paper studies the efficiency of social network learning (SNL) in the principal-agent framework. We first introduce the...