Dynamic moral hazard with sequential tasks
Author
Type :
Article
Publication Status :
Published
Access :
restrictedAccess
Abstract
We study a sequential agency problem with hidden actions in an infinite horizon dynamic setting. The principal has a project that requires completion of two sequential tasks where the predecessor must be finished before the successor can be started. We characterize the efficient outcome as well as the optimal full commitment contract.
Source :
Economics Letters
Date :
2019-10
Volume :
183
Publisher :
Elsevier
URI
http://hdl.handle.net/10679/6666https://www.sciencedirect.com/science/article/abs/pii/S0165176519302988
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