Roy Radner and Incentive Theory *
نویسنده
چکیده
How to provide agents with sufficient motivation to do what society — or its proxy in the guise of a center or social planner — wants them to do is the subject of incentive theory. The theory has normative force whenever, metaphorically speaking, the invisible hand of the market fails to provide such motivation automatically. Market failure can come about either because markets are imperfect in some way or because they do not exist at all. Indeed, a leading example of a non-market environment is the internal organization of a large corporation. Alfred Chandler (1977) made just this point when he gave his study of the modern American enterprise the title The Visible Hand.
منابع مشابه
Roy Radner and incentive theory
How to provide agents with sufficient motivation to do what society – or its proxy in the guise of a center or social planner – wants them to do is the subject of incentive theory. The theory has normative force whenever, metaphorically speaking, the invisible hand of the market fails to provide such motivation automatically. Market failure can come about either because markets are imperfect in...
متن کاملThe Ex Ante Incentive Compatible Core in the Absence of Wealth Effects
Consider an exchange economy in which consumers have private information (represented by their types). Issues of resource allocation in such an economy concern how the allocation is determined by the information state (profile of agents’ types). An allocation rule, in which the (possibly random) allocation depends on the information state of the economy, can then be viewed as a direct mechanism...
متن کاملRepeated Partnership Games with Imperfect Monitoring and No Discounting
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 کامل