No cure, be paid: Super-contingent fee contracts

L. Schoonbeek, P. Kooreman

OnderzoeksoutputAcademicpeer review

1 Citaat (Scopus)

Samenvatting

A general principal-agent problem with two possible outputs, high or low is considered. The agent's utility function is additively separable in wealth and effort. It is shown that under the optimal contract, the agent should pay a penalty fee to the principal if the low output occurs.

Originele taal-2English
Pagina's (van-tot)549-551
Aantal pagina's3
TijdschriftApplied Economics Letters
Volume12
Nummer van het tijdschrift9
DOI's
StatusPublished - 15-jul-2005

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