Hashimoto, Hideo; Hamada, Kojun; Hosoe, Nobuhiro - National Graduate Institute for Policy Studies (GRIPS) - 2012
We develop a few numerical models to examine the moral hazard problems exemplified by Itoh (2003, Ch. 4), following our earlier study (Hashimoto et al. (2011)) on the adverse selection problems. To this end, we first model a risk averse or risk neutral entrepreneur who selects his action among...