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This study focuses on the optimal incentive schemes in a multi-agent moral hazard model, where each agent has other-regarding preferences and an individual measure of output, with both being observable by the principal. In particular, the two agents display homo moralis preferences. I find that,...
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in a team setting with two agents whose efforts affect output stochastically, I demonstrate that the power of extrinsic … principal. I also show that a team of moral agents will only be preferred if the production technology exhibits decreasing …
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