Now showing items 1-2 of 2
A Flexible Framework for the Examination of Production, Measurement, and Contracts in the Face of Moral Hazard
I develop a framework to examine the effect of measurement on productive activity in the face of moral hazard. I allow an agent intricate control over the stochastic value of a firm's assets, and he is compensated based ...
Toward an Accounting-Centric Principal-Agent Framework: Theory and Some Applications
I develop a principal-agent framework in which agents take actions that influence a firm's general ledger accounts. My framework is tractable and facilitates optimal closed-form solutions without assuming preferred actions ...