Linear programming is an important method for computing solutions to private information problems. The method is applicable for arbitrary specifications of the references and technology. Unfortunately, as the cardinality of underlying sets increases the programs quickly become too large to...

Economists regularly consider moral hazard when they analyze topics like insurance contracts, labor compensation, and financial regulation. The primer provided here describes moral hazard, its implications, and how to model it. The modeling strategy is to allow randomization in the contractual...