A general Lagrangian approach for non-concave moral hazard problems
type: Item
instance of: scholarly article
title: A general Lagrangian approach for non-concave moral hazard problems
zbMATH Open document ID: 0970.91050
DOI: 10.1016/S0304-4068(00)00055-0
author: Aloisio Araujo
author: Humberto Moreira
published in: Journal of Mathematical Economics
publication date: 2001-07-17T00:00:00Z
review text: The authors establish a general Lagrangian for the moral hazard problem which generalizes the well known first-order approach. It requires that besides the multiplier of the first-order condition, there exist multipliers for the second-order condition and for the binding actions of the incentive compatibility constraint. The authors show that their approach can be useful to treat the finite and infinite state space cases.
reviewed by: Marian Matłoka
Mathematics Subject Classification ID: 91B64
zbMATH DE Number: 1594788
zbMATH Keywords: general Lagrangian
zbMATH Keywords: moral hazard problem
zbMATH Keywords: first-order approach
MaRDI profile type: MaRDI publication profile
cites work: Q4220391
cites work: An Analysis of the Principal-Agent Problem
cites work: Justifying the First-Order Approach to Principal-Agent Problems
cites work: Q5566063
cites work: Q3770254
cites work: The existence of optimal contracts in the principal-agent model
cites work: The First-Order Approach to Principal-Agent Problems
cites work: Q4405392
cites work: Q4340096
cites work: The First-Order Approach to Multi-Signal Principal-Agent Problems
full work available at URL: s0304-4068(00)00055-0
OpenAlex ID: W2139639096
Recommended article: A general solution method for moral hazard problems
Recommended article: Repeated moral hazard and recursive Lagrangeans
Recommended article: On the generalized principal-agent problem: a comment
Recommended article: A unifying approach to incentive compatibility in moral hazard problems
Recommended article: On the moral hazard problem without the first-order approach
description: scientific article; zbMATH DE number 1594788