this study investigates the design of incentive compensation and agents’ behaviors in product innovation. We develop a dynamic control model in which product quality improvement depends on both instantaneous investment and manager’s innovative effort. Moreover, we consider the sensitivity of...

We study a Bayesian learning model with heterogeneity in which the agents control both short-term manipulations and long-term efforts aimed at solving the optimal contract in dynamic environments. At the same time, considering the dynamic characteristics of contracts, the paper considers the...

In this paper, we apply car-following model to study the influences of the vehicle’s fuel consumption and exhaust emissions on each commuter’s trip cost allowing late arrival. Our results show that considering each commuter’s fuel cost and emission cost only enhances his trip cost and the...

Under the bounded rationality assumption, a principal rarely provides an optimal contract to an agent. Learning from others is one way to improve such a contract. This paper studies the efficiency of social network learning (SNL) in the principal-agent framework. We first introduce the...

Based on the principal-agent model, the continuous-time optimal contract with asymmetric information is studied in the case of competition, cooperation, and neutrality between agents. According to stochastic optimal control theory, the optimal contract is given to solve the generalized dynamic...

Based on the principal-agent model, the continuous time optimal contract with asymmetric information is studied in the case of competition, cooperation, and neutrality between two agents, and the optimal behavior selection and incentive mechanism of agents are analyzed. The results show that the...

We consider a general framework of optimal contract design under the heterogeneity and short-termism of agents. Our research shows that the optimal contract must weigh the agent's information rent, incentive cost, and benefit to overcome the contract's adverse selection and moral hazards. Agents...

In recent years, increasing concerns over climate change and transportation energy consumption have sparked research into the influences of urban form and land use patterns on motorized travel, notably vehicle miles traveled (VMT). However, empirical studies provide mixed evidence of the...