This paper addresses the class of generalized agency problems: situations in which adverse selection and moral hazard are jointly present. The complexity of the problem is increased by the interactions between the incentives associated with both types of private information. We present a...

This paper addresses the class of generalized agency problems: situations in which adverse selection and moral hazard are jointly present. We present a decomposition of the principal's optimization problem under the first-order approach that sheds light on the interactions between the two types...

This paper addresses the class of agency problems with a risk-neutral principal and a risk-averse agent where hidden action and hidden information (on the agent's efficiency) are jointly present. The commonly used technological assumptions - such as the monotone-likelihood-ratio property (MLRP)...