Flexible Moral Hazard Problems

IF 6.6 1区经济学 Q1 ECONOMICS Econometrica Pub Date : 2024-03-19 DOI:10.3982/ECTA21383

George Georgiadis, Doron Ravid, Balázs Szentes

引用次数: 0

Abstract

This paper considers a moral hazard problem where the agent can choose any output distribution with a support in a given compact set. The agent's effort-cost is smooth and increasing in first-order stochastic dominance. To analyze this model, we develop a generalized notion of the first-order approach applicable to optimization problems over measures. We demonstrate each output distribution can be implemented and identify those contracts that implement that distribution. These contracts are characterized by a simple first-order condition for each output that equates the agent's marginal cost of changing the implemented distribution around that output with its marginal benefit. Furthermore, the agent's wage is shown to be increasing in output. Finally, we consider the problem of a profit-maximizing principal and provide a first-order characterization of principal-optimal distributions.

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灵活的道德风险问题

本文考虑的是一个道德风险问题，即代理人可以选择任何在给定紧凑集合中具有支持的产出分布。代理的努力成本在一阶随机支配中是平滑和递增的。为了分析这个模型，我们开发了适用于度量优化问题的一阶方法的广义概念。我们证明了每种输出分布都可以实现，并确定了实现该分布的合约。这些合约的特点是，每种产出都有一个简单的一阶条件，即代理人改变围绕该产出实施的分配的边际成本与其边际收益相等。此外，代理人的工资随产出的增加而增加。最后，我们考虑了利润最大化委托人的问题，并提供了委托人最优分配的一阶特征。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Econometrica 社会科学-数学跨学科应用

CiteScore

11.00

自引率

3.30%

发文量

审稿时长

6-12 weeks

期刊介绍： Econometrica publishes original articles in all branches of economics - theoretical and empirical, abstract and applied, providing wide-ranging coverage across the subject area. It promotes studies that aim at the unification of the theoretical-quantitative and the empirical-quantitative approach to economic problems and that are penetrated by constructive and rigorous thinking. It explores a unique range of topics each year - from the frontier of theoretical developments in many new and important areas, to research on current and applied economic problems, to methodologically innovative, theoretical and applied studies in econometrics. Econometrica maintains a long tradition that submitted articles are refereed carefully and that detailed and thoughtful referee reports are provided to the author as an aid to scientific research, thus ensuring the high calibre of papers found in Econometrica. An international board of editors, together with the referees it has selected, has succeeded in substantially reducing editorial turnaround time, thereby encouraging submissions of the highest quality. We strongly encourage recent Ph. D. graduates to submit their work to Econometrica. Our policy is to take into account the fact that recent graduates are less experienced in the process of writing and submitting papers.

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