Hörner, Johannes; Samuelson, Larry - In: RAND Journal of Economics 44 (2013) 4, pp. 632-663
type="main" <p>We examine a repeated interaction between an agent who undertakes experiments and a principal who provides the requisite funding. A dynamic agency cost arises—the more lucrative the agent's stream of rents following a failure, the more costly are current incentives, giving the...</p>