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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

Modeling strategic investment decisions in spatial markets

Lorenczik, Stefan; Malischek, Raimund; Trüby, Johannes - 2014

Markets for natural resources and commodities are often oligopolistic. In these markets, production capacities are key for strategic interaction between the oligopolists. We analyze how different market structures influence oligopolistic capacity investments and thereby affect supply, prices and...

Persistent link: https://www.econbiz.de/10010344067

Optimal Task Assignments

Balmaceda, Felipe - 2018

This paper studies optimal task assignments in a risk neutral principal-agent model in which agents are compensated according to an aggregated performance measure. The main trade-off involved is one in which specialization allows the implementation of any possible effort profile, while...

Persistent link: https://www.econbiz.de/10014033843

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

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

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

Optimal Product Placement

Hsu, Chia-Ling - 2018

We model a market, such as an online software market, in which an intermediary connects sellers and buyers by displaying sellers' products. With two vertically-differentiated products, an intermediary can place either: (1) one product, not necessarily the better one, on the first page, and the...

Persistent link: https://www.econbiz.de/10012934480

Bayesian Optimal Knapsack Procurement

Ensthaler, Ludwig - 2013

A budget-constrained buyer wants to purchase items from a shortlisted set. Items are differentiated by observable quality and sellers have private reserve prices for their items. The buyer's problem is to select a subset of maximal quality. Money does not enter the buyer's objective function,...

Persistent link: https://www.econbiz.de/10013079991

Horizontal collaboration in oligopoly supply chain

Rajak, Sonu; Parthiban, P.; Dhanalakshmi, R. - In: International journal of services and operations … 39 (2021) 3, pp. 362-376

Persistent link: https://www.econbiz.de/10012595465

Optimal Multiattribute Screening

Weber, Thomas A. - 2016

We provide a technique for constructing optimal multiattribute screening contracts in a general setting with one-dimensional types based on necessary optimality conditions. Our approach allows for type-dependent participation constraints and arbitrary risk profiles. As an example we discuss...

Persistent link: https://www.econbiz.de/10012978605