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We introduce learning based on genetic algorithms in a principal-agent model of optimal contracting under moral hazard … explore is to explicitly model the principal's learning process about the agent's preferences and the production technology … learning algorithms lead to convergence to the underlying optimal contract under full rationality as studied by the mechanism …
Persistent link: https://www.econbiz.de/10005051212
We study adoption of a costly new technology when the profitability of the new technique differs over individuals and there is uncertainty about these individual-specific differences. We establish that such individual-specific uncertainty results in a financing constraint when debt contracts are...
Persistent link: https://www.econbiz.de/10005069329