Hu, Ping; Kale, Jayant R.; Pagani, Marco; Subramanian, Ajay - In: Management Science 57 (2011) 4, pp. 628-646
We develop a unified model of the interactions among investors, fund companies, and fund managers. We show that the interplay between a manager's incentives from her compensation structure and career concerns leads to a nonmonotonic (approximately U-shaped) relation between her risk choices and...