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emerge at equilibrium. We define the notion of coalitional network to represent a network and a coalition structure, where … the network specifies the nature of the relationship each individual has with his coalition members and with individuals … contractual stability which requires that any change made to the coalitional network needs the consent of both the deviating …
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emerge at equilibrium. We define the notion of coalitional network to represent a network and a coalition structure, where … the network specifies the nature of the relationship each individual has with his coalition members and with individuals … contractual stability which requires that any change made to the coalitional network needs the consent of both the deviating …
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Gaming is an important problem when firms use a nonlinear incentive contract. Previous empirical researches show that gaming reduces firm's profit. This paper derives the cost of gaming in a dynamic moral hazard model and show that this cost is higher when the employee is more productive....
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