A general existence result for the principal-agent problem with adverse selection (Q5931986)
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scientific article; zbMATH DE number 1594792
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | A general existence result for the principal-agent problem with adverse selection |
scientific article; zbMATH DE number 1594792 |
Statements
A general existence result for the principal-agent problem with adverse selection (English)
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17 July 2001
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In this paper principal-agent mathematical models with adverse selection are studied. The author studies agent's preferences and their contracts with principal (incentive-compatible) contracts. The principal's problem of building such kind of contracts is written as a variational problem with \(h\)-convexity constraint. The characterization of implementability of adverse selection in terms of \(h\)-convexity is provided.
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principal-agent model
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contract theory
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incentive-computability
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