This paper analyses problems within the asymmetric information models (principal agent models) where we replace standard assumption of maximisation of expected income by maximisation of probability of economic survival. This paper concentrates on two basic models - adverse selection model and...

This paper analyses problems within the asymmetric information models (principal agent models) where we replace standard assumption of maximisation of expected income by maximisation of probability of economic survival. This paper concentrates on two basic models- adverse selection model and...

The paper shows that the donator’s altruism could have more forms. The particular form of his criterion influences significantly his decision about allocation of donations between recipients of the donation. Moreover, even under one criterion we could mention sudden change in strategy of the...