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Gaming is an important problem when firms use a nonlinear incentive contract. Previous empirical researches show that gaming reduces firm's profit. This paper derives the cost of gaming in a dynamic moral hazard model and show that this cost is higher when the employee is more productive....
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We consider a generalization of the Minimum Cost Spanning Tree (MCST) model dubbed the Minimum Cost Connection Network … (MCCN) model, where network users have connection demands in the form of a pair of target nodes they want connected directly …, or indirectly. Given a network which satisfies all connection demands at minimum cost, the problem consists of allocating …
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