Finding the Loopholes

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We explore a simple overlapping-generations model of the evolution via “loopholes” of incentive systems such as contracts, organizations, or regulatory regimes. Young principals, who are uncertain about what actions will be feasible for their agents, get limited observations of earlier agents’ behavior, and rationally update their beliefs about feasible actions. When old, they offer contracts t...

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We explore a simple model of the evolution via “loopholes” of incentive systems such as contracts, organizations, or regulatory regimes. Young principals, who are uncertain about what actions will be feasible for their agents, get limited observations of earlier agents’ behavior, and rationally update their beliefs about feasible actions. When old, they offer contracts that deter only the harmf...

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ژورنال

عنوان ژورنال: Index on Censorship

سال: 1987

ISSN: 0306-4220,1746-6067

DOI: 10.1177/030642208701600409