This paper studies the effect of timing and commitment of verification in a principal-agent relationship with moral … simultaneously with his effort choice and auditing where the principal can condition her verification effort on the realized outcome … the time of contracting. The main contribution of this paper is to highlight the importance of commitment by the principal …

We study a discrete-time model of repeated moral hazard without commitment. In every period, a principal finances a … the returns of a successful project unbeknownst the principal. The absence of commitment is reflected both in the solution … period to the next. We show that removing commitment from the equilibrium concept is relatively innocuous -- if the players …

This paper evaluates the effects of the lack of regulatory commitment on emission tax applied by the regulator … find that the lack of commitment leads to lower taxation and abatement that yield larger emissions and, consequently, a … social welfare. Thus, our analysis indicates that the lack of commitment has a negative impact of welfare although this …

This paper evaluates the effects of the lack of regulatory commitment on emission tax applied by the regulator … find that the lack of commitment leads to lower taxation and abatement that yield larger emissions and, consequently, a … social welfare. Thus, our analysis indicates that the lack of commitment has a negative impact of welfare although this …

contracting without commitment. …

intuition behind this result is provided that may shed some light on the problem of dynamic contracting without commitment. …

investment. In the absence of commitment, the incumbent will not invest, so that unbundling regulation may lower welfare as …