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centralizing operations, which weakens incentives. Property rights may be weak: talent may leave and develop the project elsewhere … some centralization, eschewing first-best effort incentives. Moreover, whenever the corporation finances, it is socially …
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theory (agency, conflict of interests, effort). Thus, we price the optimal incentives that induce the concessionaire in …
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I study the optimal choice of investment projects in a continuous time moral hazard model with multitasking. While in the first best, projects are invariably chosen by the net present value (NPV) criterion, moral hazard introduces a cutoff for project execution which depends on both a project's...
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