Olesen, Henrik Ballebye; Olsen, Rene H. - Institut for Fødevare- og Ressourceøkonomi, … - 2001
The contracts we consider in this paper must solve three problems: moral hazard, insurance and discrimination. The moral hazard problem is that of providing the agents with incentives to perform in a way that maximizes the profit to the principal, when the agent's actions are unobservable. The...