Using the "budget-based scheme" approach developed by Kirby et.al. (1991) and Reichelstein (1992), this paper establishes the optimal policy function in order to control "hidden actions" from managers of Public Water Utilities (PWU) regarding investments that deviate from the Optimized Business...

This paper extends standard agency theoretic models to explicitly take into account the presence of multiple criteria at the agent level. Two possible approaches for this extension are discussed. In the first approach, we consider only the minimum information that the principal might posses...