Contracting with altruistic agents under moral hazard
Cécile Aubert
No 200, Econometric Society 2004 North American Summer Meetings from Econometric Society
Abstract:
In principal-agent settings with moral hazard, the fact that agents are altruistic vis-a-vis third parties (e.g. their family) modifies incentive costs. We derive sufficient conditions for the principal to benefit from altruism. They bear on how altruism affects the agent's marginal rate of substitution between monetary transfers and effort. We characterize the contracts allowing to screen agents with different degrees of altruism for additive separable utilities. When two agents who are altruistic with respect to each other participate in a contractual relationship with two different principals, the outcomes in the two hierarchies become linked as in a common agency game. With public information on contracts and outcomes, and sequential contracting, the first principal cannot induce effort in equilibrium
Keywords: Incentives; Altruism; Moral Hazard; Insurance (search for similar items in EconPapers)
JEL-codes: D10 D82 (search for similar items in EconPapers)
Date: 2004-08-11
References: Add references at CitEc
Citations:
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Working Paper: Contracting with Altruistic Agents under Moral Hazard (2004)
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:ecm:nasm04:200
Access Statistics for this paper
More papers in Econometric Society 2004 North American Summer Meetings from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().