Showing 1 - 10 of 379
It is well known that ex-ante randomization can improve upon second best contracts in principal-agent problems. In this note, we show that even the ¯rst{best can be dominated by a random contract. Our example is cast in a standard textbook set-up with two e®ort levels and two states of nature.
Persistent link: https://www.econbiz.de/10005627908
Persistent link: https://www.econbiz.de/10013443058
Persistent link: https://www.econbiz.de/10013443059
Persistent link: https://www.econbiz.de/10013443060
Persistent link: https://www.econbiz.de/10013443061
Persistent link: https://www.econbiz.de/10013443062
Persistent link: https://www.econbiz.de/10013443063
Persistent link: https://www.econbiz.de/10013443065
Persistent link: https://www.econbiz.de/10013443066