requires the use of an appropriate incentive contract so as to realign his interests with those of the principal. The parties … of the optimal flexible contract both when the parties have sharp probabilistic beliefs over the possible events in which … risk aversion, the higher the agency costs for delegation and hence the less profitable is a flexible contract versus a …

choose and then design the contract to optimally balance the trade-off between incentives to limit the contractor's supply … cannot be easily described in - and enforced within - the contract, the procurer must use other tools to ensure successful …

The optimal insurance problem represents a fast growing topic that explains the most efficient contract that an … insurance player may get. The classical problem investigates the ideal contract under the assumption that the underlying risk …-maker aims to identify a robust optimal contract that is not sensitive to the chosen risk distribution. We focus on Value …

We study the design of an optimal insurance contract in which the insured maximizes her expected utility and the … crucial to rule out ex post moral hazard. We also find that the deductible is absent if and only if the contract pricing is …

This paper deals with the risk of opportunism – the usual risk in economic exchanges. The breach of contract is …