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Risk-neutral individuals take more risky decisions when they have limited liability. Risk-neutral managers may not when …
Persistent link: https://www.econbiz.de/10013316254
This paper investigates relational incentive contracts with continuous, privately-observed agent types that are persistent over time. With fixed agent types, full separation is not possible when continuation equilibrium payoffs following revelation are on the Pareto frontier of attainable...
Persistent link: https://www.econbiz.de/10013018191