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This paper proposes a prior-free model of moral hazard wherein the principal's beliefs about the agent's production technology are characterized by revealed preference data. The principal and the agent are each financially risk neutral and the agent's preferences are understood to be quasilinear...
Persistent link: https://www.econbiz.de/10014243042
We study a general moral hazard problem wherein the principal does not know the agent’s beliefs about the production technology. The agent, who is risk neutral and enjoys limited liability, makes a one-dimensional choice of effort. The principal understands both the actions available to the...
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