We present a model of delegation with moral hazard. A principal delegates a decision to an agent, who affects the … economic environments. Optimal delegation takes one of four simple forms, all commonly used in practice: floors, ceilings …

actually pay the announced bonus. This offers a new explanation for why explicit and implicit incentives are substitutes rather …

institutional moral hazard in a multi-tiered UI system, and give examples of monitoring methods and incentives to ameliorate such …