Showing 1 - 9 of 9
We consider the problem of a principal who wishes to contract with a privately informed agent and is not able to commit to not renegotiating any mechanism. That is, we allow the principal, after observing the outcome of a mechanism to renegotiate the resulting contract without cost by proposing...
Persistent link: https://www.econbiz.de/10012895796
We consider the problem of a principal who wishes to contract with a privately informed agent and is not able to commit to not renegotiating any mechanism. That is, we allow the principal, after observing the outcome of a mechanism to renegotiate the resulting contract without cost by proposing...
Persistent link: https://www.econbiz.de/10011946012
Persistent link: https://www.econbiz.de/10008656732
We analyze the Moral Hazard problem, assuming that agents are inequity averse. Our results differ from conventional contract theory and are more in line with empirical findings than standard results. We find: First, inequity aversion alters the structure of optimal contracts. Second, there is a...
Persistent link: https://www.econbiz.de/10003011503
Persistent link: https://www.econbiz.de/10001436032
We analyze the Moral Hazard problem, assuming that agents are inequity averse. Our results differ from conventional contract theory and are more in line with empirical findings than standard results. We find: First, inequity aversion alters the structure of optimal contracts. Second, there is a...
Persistent link: https://www.econbiz.de/10013318431
This paper addresses the question of how the principal's surplus and agency costs depend on the agent's wealth. Our main results are: If the agent has an additively separable utility function in income and effort and his degree of absolute prudence is smaller than three times the agent's degree...
Persistent link: https://www.econbiz.de/10014185245
This paper addresses the question of how the principal's surplus and agency costs depend on the agent's wealth. Using the first-order approach, we identify properties of the agent's utility function which are sufficient conditions to guarantee that richer agents induce a lower expected surplus...
Persistent link: https://www.econbiz.de/10014223009
Persistent link: https://www.econbiz.de/10013428166