Consider a Principal Agent game with moral hazard and a risk averse agent The principal has utility function Up q w while the agent has utility function UA v(w)e If the Agent rejects the Principals offered contract, then the Principal gets Up and the agent gets UA Quality, q, takes one of two valu...

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Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

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Posted Date: May 02, 2024 06:15 AM

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= Consider a Principal-Agent game with moral hazard and a risk averse agent. The principal has...

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Managerial Economics and Strategy

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