Gayle, George-Levi; Miller, Robert Allen - In: CESifo economic studies : CESifo, a joint initiative of … 55 (2009) 3/4, pp. 515-541
This article provides evidence that managers have private information they exploit for financial gain at the expense of shareholders. It develops a model of optimal contracting to show that moral hazard, hidden actions taken by agents, can rationalize why a principal would optimally induce...
