Berdud, Mikel; Hita, Juan M. Cabasés; Nieto, Jorge - Departamento de Economía - Universidad Pública de Navarra - 2014
This paper explores optimality of contracts and incentives when the principal (public organization) can undertake investments to change agents’ (public workers) identity. In the model, workers within the organization can have different identities. We develop a principal-agent dynamical model...