I study the role agent's wealth plays in principal–agent matching with moral hazard and limited liability. consider talent as type size firm's (principal's) type. Wealthier agents match bigger firms, when is homogeneous among them, whereas for equally wealthy agents, more talented will firms. describe economic conditions over types such that pairs of higher write contracts which agent gets than...

We consider a self-administered organization characterized by a principal elected by the agents and establish conditions under which self-administration leads to either stronger or weaker incentives than an organization which only pursues exogenous objectives such as profit maximization. While the output of the organization that accrues to society is controlled by the effort of the agents and b...