EconPapers    
Economics at your fingertips  
 

Flexible contracts

Piero Gottardi (), Jean-Marc Tallon () and Paolo Ghirardato ()

Games and Economic Behavior, 2017, vol. 103, issue C, 145-167

Abstract: This paper studies the costs and benefits of delegating decisions to superiorly informed agents, that is of adopting flexible contracts, relative to the use of rigid, non-discretionary contracts. The main focus of the paper lies in the analysis of the costs of delegation, primarily agency costs, versus their benefits, primarily the flexibility of the action choice in two different environments, one with risk and one with ambiguity.

Keywords: Delegation; Flexibility; Agency costs; Multiple priors; Imprecision aversion (search for similar items in EconPapers)
JEL-codes: D86 D82 D81 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0899825616000312
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Flexible contracts (2017) Downloads
Working Paper: Flexible contracts (2015) Downloads
Working Paper: Flexible contracts (2011) Downloads
Working Paper: Flexible contracts (2011) Downloads
Working Paper: Flexible Contracts (2010) Downloads
Working Paper: Flexible Contracts (2009) Downloads
Working Paper: Flexible contracts (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:103:y:2017:i:c:p:145-167

Access Statistics for this article

Games and Economic Behavior is currently edited by E. Kalai

More articles in Games and Economic Behavior from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2020-01-21
Handle: RePEc:eee:gamebe:v:103:y:2017:i:c:p:145-167