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We develop a model of relational contracts with moral hazard and asymmetric persistent information about an employee's type. We find that the form of the optimal contract depends on the job characteristics as well as the distribution of employees' talent. Bonus contracts are more likely to be...
Persistent link: https://www.econbiz.de/10010382180
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We develop an endogenous growth model to study the long run consequences of offshoring with firm heterogeneity and incomplete contracts. In so doing, we model offshoring as the geographical fragmentation of a firm's production chain between a home upstream division and a foreign downstream one....
Persistent link: https://www.econbiz.de/10008811380
We show that privatization can be beneficial even if the government is rational and benevolent, and if the firm's economic and informational environment is independent of the governance structure. The model assumes that wage contracts between the firm's owner (government or private entrepreneur)...
Persistent link: https://www.econbiz.de/10011597691
This paper addresses the conditions for setting up strict civil liability schemes. For that it compares the social … efficiency of two main civil liability regimes usually enforced to protect the environment: the strict liability regime and the … "capped strict liability scheme". First, it shows that the regulator faces an effective dilemma when he has to enforce one of …
Persistent link: https://www.econbiz.de/10008903426
regulated by strict liability schemes. Strict liability induces judgment-proof possibilities. Two civil liability regimes are … then compared: a strict liability scheme and a capped strict liability one. The argument is led under a twofold asymmetric … wealth. The paper shows that standard strict liability under information asymmetries deters the efficient agent to compete …
Persistent link: https://www.econbiz.de/10008735714
liability regimes in tort law: rule of negligence and strict liability. Starting from the standard Shavellian unilateral … accident scheme, I show that matching up liability regime on their capacity to provide the highest level of safety is … associated to the burden of evidence, the fairness between victims and injurers, etc. -- Strict Liability ; Negligence Rule …
Persistent link: https://www.econbiz.de/10009506385
Persistent link: https://www.econbiz.de/10000937509
This paper analyzes the meaning of comparing the economic performance of strict liability and negligence rule in a … injurers form beliefs. It shows first that, when the Court agrees with the regulator, whatever the liability regime, the first …, judge and regulator disagree, it is impossible to discriminate among liability standards because the issue depends on the …
Persistent link: https://www.econbiz.de/10010189329
Persistent link: https://www.econbiz.de/10011712933