Narrow search
Showing 1 - 10 of 19,652
Cover Image
The Impact of Firm Size on Dynamic Incentives and Investment
Chi, Chang Koo - 2019
Recent empirical studies conclude that small firms have higher but more variable growth rates than large firms. To explore the effect of this size-dependence regularity on moral hazard and investment, we develop a continuous-time agency model with time-varying firm size. Firm size is a diffusion...
Persistent link: https://www.econbiz.de/10012905816
Cover Image
Optimal Task Assignments with Loss-Averse Agents
Balmaceda, Felipe - 2018
This paper studies optimal task assignments in a setting where agents are expectation-based loss averse according to KoszegiRabin (2006) and KoszegiRabin (2007) and are compensated according to an aggregated performance measure in which tasks are technologically independent. We show that the...
Persistent link: https://www.econbiz.de/10012927853
Cover Image
Relative Performance Evaluation in a Multi-Plant Firm
Luporini, Annalisa - 2021
We analyze optimal compensation schedules for the directors of two plants belonging to the same owner and producing the same good but serving geographically differentiated markets. Since the outcome of each director depends on his own effort and on a random variable representing market...
Persistent link: https://www.econbiz.de/10013318699
Cover Image
Optimal Monitoring Schedule in Dynamic Contracts
Chen, Mingliu - 2020
Consider a setting in which a principal induces effort from an agent to reduce the arrival rate of a Poisson process of adverse events. The effort is costly to the agent, and unobservable to the principal, unless the principal is monitoring the agent. Monitoring ensures effort but is costly to...
Persistent link: https://www.econbiz.de/10012853741
Cover Image
Chapter 10. Recursive Contracts and Endogenously Incomplete Markets
Golosov, M.; Tsyvinski, A.; Werquin, N. - In: Handbook of macroeconomics : volume 2, v. 2A-2B SET, (pp. 725-841). 2016
—the theory of recursive contracts. Recursive formulations allow us to reduce often complex models to a sequence of essentially … of the basic theory: the Revelation Principle, formulating and simplifying the incentive constraints, using promised … advanced topics: duality theory and Lagrange multiplier techniques, models with lack of commitment, and martingale methods in …
Persistent link: https://www.econbiz.de/10014024287
Cover Image
The Dual Approach to Recursive Optimization : Theory and Examples
Pavoni, Nicola - 2016
We bring together the theories of duality and dynamic programming. We show that the dual of a separable dynamic optimization problem can be recursively decomposed. We provide a dual version of the principle of optimality and give conditions under which the dual Bellman operator is a contraction...
Persistent link: https://www.econbiz.de/10013008468
Cover Image
Unemployment insurance eligibility and the school-to-work transition in Canada and the United States
Ferrall, Christopher - In: Journal of business & economic statistics : JBES ; a … 15 (1997) 2, pp. 115-129
Persistent link: https://www.econbiz.de/10001335371
Cover Image
Optimal management of supply disruptions when contracting with unreliable, risk-averse, suppliers
Parlane, Sarah; Tsai, Yingyi - 2017
This paper investigates the optimal management of supply disruptions by a manufacturer who uses order inflation and/or investments in process reliability when contracting two risk-averse suppliers. We consider that these investments can be subject to moral hazard. Technically we solve a...
Persistent link: https://www.econbiz.de/10011665554
Cover Image
Optimal CEO Compensation with Search : Theory and Empirical Evidence
Cao, Melanie - 2013
We integrate an agency problem into search theory to study executive compensation in a market equilibrium. A CEO can …
Persistent link: https://www.econbiz.de/10013089515