Consider a setting in which a principal induces effort from an agent to reduce the arrival rate of a Poisson process of adverse events. The effort is costly to the agent, and unobservable to the principal, unless the principal is monitoring the agent. Monitoring ensures effort but is costly to...

We study the optimal incentive scheme for a long-term project with both moral hazard and adverse selection. The moral hazard issue is due to the fact that the agent's effort, which increases the arrival rate of a Poisson process, is not observable by the principal. In addition, the agent's...

This paper studies a dynamic principal-agent setting in which the principal needs to dynamically schedule an agent to work or rest. When the agent is motivated to work, the arrival rate of a Poisson process increases, which increases the principal's payoff. Resting, on the other hand, serves as...