We compare the alternative approaches for regulating genetic information in the health insurance market when prevention measures are available. In the model, firms offer insurance contracts to consumers who are initially uninformed of their risk type but can obtain such information by performing...

The quality of the information directly affects the optimal contract and the expected output in principal-agent theory. In this paper, with Bayesian rules, we design an IT service outsourcing model under the framework of the principal-agent in order to analyse the effects of the quality of...

A central insight of agency theory is that when a principal offers a contract to a privately informed agent, the principal trades off ex post efficiency in the bad state of nature against a larger profit in the good state of nature. We report about an experiment with 508 participants designed to...

This paper deals with vehicular traffic management by communication technologies from Traffic Control Center point of view in road networks. The global goal is to manage the urban traffic by road traffic operations, controlling and interventional possibilities in order to minimize the traffic...

Multi-product firms are modelled as locally interacting entities that gather information on the profitability of product combinations in an environment defined in terms of their currently supplied markets. They learn from their own past play. Local information gathering may slow down convergence...

We study the effect of additional private information in an agency model with an endogenous information structure. If more private information becomes available to the agent, this may hurt the agent, benefit the principal, and affect the total surplus ambiguously.

In a typical corporate hierarchy, the manager is delegated the authority to make strategic decisions, and to contract with other employees. We study when such delegation can be optimal. In centralization, the owner retains the authority, which fails to motivate the manager to acquire valuable...