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Azar, Pablo D.; Micali, Silvio - In: Theoretical economics : TE ; an open access journal in … 13 (2018) 2, pp. 553-578

Collecting and processing large amounts of data is becoming increasingly crucial in our society. We model this task as evaluating a function f over a large vector x=(x1,…,xn), which is unknown, but drawn from a publicly known distribution X. In our model, learning each component of the input x...

Persistent link: https://www.econbiz.de/10011856697

Hunting with Two Bullets : Moral Hazard with a Second Chance

Fagandini, Paulo - 2018

I study the moral hazard problem where an agent can create an extra instance of effort and potentially improve bad realizations of the outcome before the principal observes it. The agent cannot hide the outcome of his effort, but just the way he achieved it. Findings are that both, principal and...

Persistent link: https://www.econbiz.de/10012912551

Enforcement of Optimal Disclosure Rules in the Presence of Moral Hazard

Versano, Tsahi - 2020

This paper analyzes the role of disclosure enforcement mechanisms (such as SEC enforcement teams and corporate governance systems) in directing the disclosure practices of managers when the information is used by shareholders to monitor the manager. The paper establishes a role for a disclosure...

Persistent link: https://www.econbiz.de/10012846123

Incomplete Contracts, Limited Liability, and the Optimality of Joint Ownership

Schmitz, Patrick W. - 2019

The property rights approach to the theory of the firm is the most prominent application of the incomplete contracting …

Persistent link: https://www.econbiz.de/10012864429

Conflicting Tasks and Moral Hazard : Theory and Experimental Evidence

Hoppe, Eva I.; Kusterer, David J. - 2009

We study a multi-task principal-agent problem in which tasks can be in direct conflict with each other. In theory, it …

Persistent link: https://www.econbiz.de/10014202367

All-Units Discounts and Double Moral Hazard

O'Brien, Daniel P. - 2017

An all-units discount is a price reduction applied to all units purchased if the customer's total purchases equal or exceed a given quantity threshold. Since the discount is paid on all units rather than marginal units, the tariff is discontinuous and exhibits a negative marginal price...

Persistent link: https://www.econbiz.de/10014160193

What is Wrong with Moral Hazard and Adverse Selection Problems in the Conventional Economic Theory

Lemennicier, Bertrand Claude - 2014

The purpose of this paper is to challenge the conventional theory of moral hazard and adverse selection. Moral hazard … and adverse selection problems in contemporary economic theory are plagued with four major flaws: 1) the alleged … Akerlof and Rothschild and Stiglitz's theory and their followers based on additive or non additive expected utility associated …

Persistent link: https://www.econbiz.de/10014146788

A Note on Walrasian Equilibria with Moral Hazard and Aggregate Uncertainty

Gottardi, Piero; Jerez, Belén - 2013

In a fundamental contribution, Prescott and Townsend (1984) [PT] have shown that the existence and efficiency properties of Walrasian equilibria extend to economies with moral hazard, when agents' trades are observable (exclusive contracts can be implemented). More recently, Bennardo and...

Persistent link: https://www.econbiz.de/10014054245

Monotone Solutions to the Moral Hazard Problem

Jin, Hanqing; Xia, Jianming - 2018

This paper investigates monotone solutions of the moral hazard problems without the monotone likelihood ratio property. The optimal monotone solutions are explicitly characterized by a concave envelope relaxation approach for a two-action model in which the principal is risk neutral or exhibits...

Persistent link: https://www.econbiz.de/10014112560

Optimal Information Disclosure with Moral Hazard

Kwak, Changhyun - 2022

This paper studies a moral hazard problem in which the principal can ex ante commit to an information disclosure policy to control the agent’s monetary incentives. The outcome depends on the unverifiable state of nature, in addition to the agent’s effort choice. I characterize the...

Persistent link: https://www.econbiz.de/10013403216