منابع مشابه
Repeated Moral Hazard with Persistence∗
This paper considers the optimal contract when the current (hidden) action of an agent has a persistent effect on the future outcome. In this setting, the current outcome is not only a signal of the current action taken by the agent, but also conveys information about his past actions. The optimal contract in a two-effort choice, two-period setting is characterized analytically and numerically....
متن کاملRepeated moral hazard with effort persistence
We study a problem of repeated moral hazard where the e¤ect of e¤ort is persistent over time: each periods outcome distribution is a function of a distributed lag of past e¤orts. We show that when the utility of the agent is linear in e¤ort, a simple rearrangement of terms in his lifetime utility translates this problem into a standard repeated moral hazard. As a consequence, the optimal consu...
متن کاملSimple Models of Operating Moral Hazard and Investing Moral Hazard
In this paper, we depict and analyze simple models of moral hazard, namely “operating moral hazard” and “investing moral hazard.” First we assume that a corporation exists primarily for the benefit of their shareholders. Then, moral hazard occurs when managers choose an option knowingly that is not optimum for shareholders. We evaluate the loss to shareholders in terms of cash flow to them in t...
متن کاملMoral Hazard and Observability
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متن کاملMoral Hazard and Ambiguity
We consider a principal-agent model with moral hazard where the agent’s knowledge about the performance measure is ambiguous and he is averse towards ambiguity. We show that the principal may optimally provide no incentives or contract only on a subset of all informative performance measures. That is, the Informativeness Principle does not hold in our model. These results stand in stark contras...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2007
ISSN: 1556-5068
DOI: 10.2139/ssrn.2186649