CHEN, HSIAO-CHI; LIU, SHI-MIIN - In: Manchester School 76 (2008) 2, pp. 131-159
In this paper we analyze the optimal incentive contracts under imperfect auditing. Both principal's commitment and no commitment to auditing cases are investigated. In the commitment case, the Baron-Besanko-type (RAND Journal of Economics, Vol. 15 (1984), pp. 447-470) contract would fail under...