Roemer, John E. - In: Zeitschrift für ArbeitsmarktForschung - Journal for … 43 (2010) 1, pp. 6-16
The market has both a coordination function and an incentive function. The first theorem of welfare economics is all about coordination; the principal-agent model is all about incentives. What is the relative importance of the market in carrying out these two functions? While there has been a...