The problem of designing tournament contracts under limited liability and alternative performance measures is considered. Under risk neutrality, only the best-performing agent receives an extra premium if the liability constraint becomes binding. Under risk aversion, more than one prize is...

The cost minimization problem in an agency model with imperfect monitoring is considered. Under the first order approach, this can be stated as a convex minimization problem with linear inequality and equality constraints in a generally infinite dimensional function space. We apply the Fenchel...

The cost minimization problem in an agency model with imperfect monitoring is considered. Under the first order approach, this can be stated as a convex minimization problem with linear inequality and equality constraints in a generally infinite dimensional function space. We apply the Fenchel...

The European Union (EU) has been debating for several years whether to change from the legal capital regime as regulated under the Second Company Law Directive to a solvency test regime as applied in the USA, for example. Based on an analysis of direct compliance costs and capital maintenance...

Die Vorteile von Outsourcing sind weitgehend unbestritten. Um aber das Potential von Outsourcing-Beziehungen in vollem Umfang nutzen zu können, müssen institutionelle Rahmenbedingungen geschaffen werden, die einerseits opportunistisches Verhalten eines Partners verhindern und andererseits...