A Principal-Agent Model for Regional Pest Control Adoption

Imprecise Beliefs in a Principal Agent Model∗

This paper presents a principal-agent model where the agent has multiple, or imprecise, beliefs. We model this situation formally by assuming the agent’s preferences are incomplete. One can interpret this multiplicity as limited knowledge of the surrounding environment. In this setting, incentives need to be robust to the agent’s beliefs. We study whether robustness implies simplicity. Under mi...

A principal-agent model of corruption

One of the new avenues in the study of political corruption is that of neo-institutional economics, of which the principal-agent theory is a part. In this article a principal-agent model of corruption is presented, in which there are two principals (one of which is corrupting), and one agent (who is corrupted). The behaviour of these principals and agent is analysed in terms of the costs and be...

A Principal-Agent Model for Product Specification and Production

This paper develops and analyzes a principal-agent model for product specification and production motivated by “core buying” decisions at Ford Motor Company. This model focuses on two important elements of the “core” buyer’s responsibility: (1) assessing the supplier’s capability and (2) allocating some or all of a fixed level of some buyer-internal resource to help the supplier. Under the cont...

Corporate Design for Regulability A Principal-Agent-Supervisor Model

Principal-Agent Theory Based Risk Allocation Model for Virtual Enterprise

College of Information Science and Engineering, Northeastern University, Key Laboratory of Integrated Automation of Process Industry (Northeastern University), Ministry of Education, Shenyang, China; Department of Mathematics, The University of Hong Kong, Hong Kong, China; Department of Actuarial Studies, Faculty of Business and Economics, Macquarie University, Sydney, Australia. Email: mhuang@...