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  • Search: subject:"Convexity in effort"
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Convexity in effort 1 First-order approach 1 Monotone likelihood ratio 1 Principal-agent problem 1
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LiCalzi, Marco 1 Spaeter, Sandrine 1
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Economic Theory 1
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Distributions for the first-order approach to principal-agent problems
LiCalzi, Marco; Spaeter, Sandrine - In: Economic Theory 21 (2003) 1, pp. 167-173
The first-order approach is a technical shortcut widely used in agency problems. The best known set of sufficient conditions for its validity are due to Mirrlees and Rogerson and require that the distribution function is convex in effort and has a likelihood ratio increasing in output. Only one...
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