Grochulski, Borys; Zhang, Yuzhe - In: Theoretical economics : TE ; an open access journal in … 18 (2023) 1, pp. 381-419
principal-agent moral hazard model of Sannikov (2008). We find that temporary suspension of the agent after poor performance … agent performs tasks free of moral hazard and receives no compensation, which rebuilds his “skin in the game” and allows for …