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thus far puzzling use of non-linear incentives, for example in sales-force compensation. The result is obtained by …
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an AR(k) process. -- asymmetric information ; stochastic processes ; incentives …
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We examine the design of incentive-compatible screening mechanisms for dynamic environments in which the agents' types follow a (possibly non-Markov) stochastic process, decisions may be made over time and may affect the type process, and payoffs need not be time-separable. We derive a formula...
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This paper investigates the optimal design of incentives when agents distort probabilities. We show that the type of …, the strength of the incentives included in the optimal contract, and the location of incentives on the output space. Our …
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