Wealth effects and agency costs

Hector Chade and Virginia N. Vera de Serio

Games and Economic Behavior, 2014, vol. 86, issue C, 1-11

Abstract: We analyze how the agent's initial wealth affects the principal's expected profits in the standard principal–agent model with moral hazard.

Keywords: Moral hazard; Principal–agent model; Contracts; Wealth effects (search for similar items in EconPapers)
JEL-codes: D86 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:86:y:2014:i:c:p:1-11

DOI: 10.1016/j.geb.2014.02.012

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