Moral Hazard and State-Dependent Utility Function
نویسندگان
چکیده
منابع مشابه
Hedonic Utility, Loss Aversion and Moral Hazard
This paper reviews recent advances in the modelling of hedonic utility and the measurement of its physiological correlates. The paper also argues that incorporating hedonic experiences can enrich economic models. An example of such an application — a principal–agent model with moral hazard — is presented and thoroughly analyzed. Its implications are then compared with the structure of incentive...
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
Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/about/terms.html. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your perso...
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...
متن کاملOverconfidence and moral hazard
In this paper, I study the e¤ects of overcon dence on incentive contracts in a moral-hazard framework in which principal and agent knowingly hold asymmetric beliefs regarding the probability of success of their enterprise. Agent overcon dence can have conicting e¤ects on the equilibrium contract. On the one hand, an overcon dent agent disproportionately values successcontingent payments, and t...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: The Journal of Risk and Insurance
سال: 1982
ISSN: 0022-4367
DOI: 10.2307/252495