This article models the duty of care as a response to moral hazard where the principal seeks to induce effort that is costly to the agent and unobservable by the principal. The duty of loyalty, by contrast, is modeled as a response to adverse selection where the principal seeks truthful...

Innovative regulatory programs are encouraging firms to police their own regulatory compliance and voluntarily disclose, or confess, the violations they find. Despite the win-win rhetoric surrounding these government voluntary programs, it is not clear why companies would participate and whether...