Optimal Contracts for Agents with Adverse Selection
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Summary
Two models are developed: pure adverse selection model and mixed adverse selection and moral hazard model, which find that whether a principal provides high-type contract or a separating equilibrium contract depends on the probability of existence of low-type agents in the market.
- Type
- article
- Published
- 2020-01-07
- Cited by
- 0
- References
- 24
- Access
- Open access
- OpenAlex
- https://openalex.org/W3000273033
- Semantic Scholar
- https://api.semanticscholar.org/CorpusID:210968659
Keywords
Adverse selection, Information asymmetry, Moral hazard, Contract theory, Incentive compatibility
References
- Optimal Labour Contracts Under Asymmetric Information: An Introduction (Now published in Review of Economic Studies, (January 1983).)
- A solvable continuous time dynamic principal-agent model
- OPTIMAL CONTRACTS FOR TEAMS
- Implicit Contracts Under Asymmetric Information
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- Dynamics of Contract Design with Screening
- Linearity with Project Selection and Controllable Diffusion Rate in Continuous-Time Principal-Agent Problems
- The First-Order Approach to the Continuous-Time Principal-Agent Problem with Exponential Utility
- Optimal Contracts Under Adverse Selection and Moral Hazard: A Continuous-Time Approach
- Convergence and approximation results for non-cooperative Bayesian games: Learning theorems
- A Continuous-Time Version of the Principal-Agent
- Optimal incentive contracts under relative income concerns
- AGGREGATION AND LINEARITY IN THE PROVISION OF INTERTEMPORAL INCENTIVES
- Correlated Equilibrium as an Expression of Bayesian Rationality Author ( s )
- The Market for "Lemons": Quality Uncertainty and the Market Mechanism
- Wage-Employment Contracts
- Optimal compensation with adverse selection and dynamic actions
- Contracting Theory with Competitive Interacting Agents
- Moral hazard in welfare economics: on the advantage of Planner's advices to manage employees' actions
- Equilibrium in a Reinsurance Market
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