Agency Discretion and Public Health Service Delivery

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Trust and Discretion in Agency Contracts

We extend the standard agency framework to allow for complex information, trustworthiness of the principal, and incomplete contracts and show that contractual incompleteness arises endogenously when there is enough complexity and trust. Several predictions of the standard model break down in our more general construction: trust plays a crucial role in the design of optimal contracts; not all th...

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ژورنال

عنوان ژورنال: Health Services Research

سال: 2009

ISSN: 0017-9124,1475-6773

DOI: 10.1111/j.1475-6773.2009.01010.x