On the value of randomization

Stephane Gauthier and Guy Laroque ()
Additional contact information
Guy Laroque: Sciences Po - Sciences Po

SciencePo Working papers Main from HAL

Abstract: An optimal contract may involve randomization when the agents differ in their attitudes towards risk, so that randomization enables the principal to relax the incentive constraints. The paper provides a necessary and sufficient condition for local random deviations to be welfare improving in a neighborhood of a nonrandom optimum.

Keywords: Random taxation; stochastic contract; second best; tax evasion.; Taxation aléatoire; contrats aléatoires; second rang; fraude fiscale. (search for similar items in EconPapers)
Date: 2011-10
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00639834v2
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in 2011

Downloads: (external link)
https://shs.hal.science/halshs-00639834v2/document (application/pdf)

Related works:
Journal Article: On the value of randomization (2014)
Working Paper: On the value of randomization (2014)
Working Paper: On the value of randomization (2014)
Working Paper: On the value of randomization (2014)
Working Paper: On the value of randomization (2014)
Working Paper: On the value of randomization (2012)
Working Paper: On the value of randomization (2011)
Working Paper: On the value of randomization (2011)
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:hal:spmain:halshs-00639834

Access Statistics for this paper

More papers in SciencePo Working papers Main from HAL
Bibliographic data for series maintained by Contact - Sciences Po Departement of Economics ().