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Dynamic Contracting Under Imperfect Public Information and Asymmetric Beliefs
Giat, Yahel - 2013
We develop a dynamic principal-agent model to show how imperfect public information and asymmetric beliefs about payoff-relevant parameters, agency conflicts, and the agent's implicit incentives to influence the principal's posterior beliefs through his unobservable actions interact to affect...
Persistent link: https://www.econbiz.de/10013078633
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Dynamic Contracting Under Imperfect Public Information and Asymmetric Beliefs
Giat, Yahel - 2013
We develop a dynamic principal-agent model to show how imperfect public information and asymmetric beliefs about payoff-relevant parameters, agency conflicts, and the agent's implicit incentives to influence the principal's posterior beliefs through his unobservable actions interact to affect...
Persistent link: https://www.econbiz.de/10013095153
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Bait contracts
Vierø, Marie-Louise - 2009
The granting of stock options to employees who have negligible impact on company performance intuitively violates Holmstrom's (1979) sufficient statistic result. This paper revisits the sufficient statistic question of when to condition a contract on an outside signal in a principal-agent model...
Persistent link: https://www.econbiz.de/10003872451
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Dynamic Contracting with Moral Hazard Under Incomplete Information
Mekonnen, Teddy - 2018
I study a continuous time principal-agent model in which an unknown parameter and the agent's hidden effort affect the distribution of observable outcomes. The principal and the agent learn about the parameter by observing past outcomes. The agent's current effort has an implicit long-term...
Persistent link: https://www.econbiz.de/10012908103
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Contracting with endogenously incomplete commitment: escape clauses
Tangerås, Thomas P.; Gick, Wolfgang - 2021
We study mechanism design under endogenously incomplete commitment as it arises in contracting with escape clauses. An escape clause permits the agent to end a contractual relationship under specified circumstances, after which the principal can offer an ex-post contract. Escape clauses are...
Persistent link: https://www.econbiz.de/10012520279
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Debt Rescheduling with Multiple Lenders : Relying on the Information of Others
Fluet, Claude - 2013
Can debt rescheduling decisions differ in multiple lenders' versus a single lender loan? Do multiple lenders efficiently react to information? We show that the precision of information plays an essential role. Foreclosing by one lender is disruptive so that a lender can rationally wait for the...
Persistent link: https://www.econbiz.de/10013075731
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On Competitive Nonlinear Pricing
Attar, Andrea - 2014
Many financial markets rely on a discriminatory limit-order book to balance supply and demand. We study these markets in a static model in which uninformed market makers compete in nonlinear tariffs to trade with an informed insider, as in Glosten (1994), Biais, Martimort, and Rochet (2000), and...
Persistent link: https://www.econbiz.de/10013054803
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Contracting under Incomplete Information and Social Preferences : An Experimental Study
Hoppe, Eva I.; Schmitz, Patrick W. - 2012
cornerstone of contract theory. We have conducted an experiment with 720 participants to explore whether the theoretical insights … are reflected by the behavior of subjects in the laboratory and to what extent deviations from standard theory can be … agency theory is indeed useful to qualitatively predict how variations in the degree of uncertainty affect subjects' behavior …
Persistent link: https://www.econbiz.de/10014162484
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Robust Monopoly Regulation
Guo, Yingni; Shmaya, Eran - 2023
We study how to regulate a monopolistic firm using a robust-design, non-Bayesian approach. We derive a policy that minimizes the regulator's worst-case regret, where regret is the difference between the regulator's complete-information payoff and his realized payoff. When the regulator's payoff...
Persistent link: https://www.econbiz.de/10014356395
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Price Discrimination in the Retailing Industry : Inducing Consumers to Reject the Loyalty Card
Foschi, Matteo - 2017
I study a model that looks at causes, characteristics and consequences of loyalty schemes in a market with consumers who suffer from self-control problems (Gul and Pesendorfer, 2001). While the literature has mostly focused on loyalty schemes as tools used by firms to compete (Caminal and...
Persistent link: https://www.econbiz.de/10012970212