نتایج جستجو برای: principal agent approach
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We present a model in which a principal delegates the choice of project to an agent with different preferences. A project’s characteristics are verifiable once presented to the principal, but the principal does not know how many projects are available to the agent. The principal chooses the set of projects which the agent can implement. Two frameworks are considered: (i) a static setting in whi...
A common economic occurrence is the following: Two parties, principal and agent, are in a situation—typically of their choosing—in which actions by the agent impose an externality on the principal. Not surprisingly, the principal will want to influence the agent’s actions. This influence will often take the form of a contract that has the principal compensating the agent contingent on either hi...
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