منابع مشابه
Overconfidence 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 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 کاملThe Impact of Overconfidence on Supply Chain Incentive Contract under Double-sided Moral Hazard
This paper analyses the impact of retailer overconfidence psychology on incentive contract for a manufacturer-retailer supply chain, where product quality is affected by the manufacturer and the retailer’s behaviors. There exists double-sided moral hazard in the supply chain. Using principal-agent model, this paper builds incentive contracts under symmetric and asymmetric information situations...
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.1141783