Download or read book On Risk and Moral Hazard in Principal agent and Cooperative Effort Arrangements written by Anjan V. Thakor and published by . This book was released on 1988 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Overconfidence in the Principal agent Framework written by Leonidas Enrique De la Rosa and published by . This book was released on 2006 with total page 222 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Rationing in a Theory of the Banking Firm written by Timothy M. Devinney and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: The existence of non-price rationing in credit markets is a subj ect, not only of paramount importance, but of considerable controversy, which is ultimately linked with our understanding, or lack thereof, of the basic nature of the banking firm. A recognition of this phenomenon is critical to the understanding of the banking firm in its major role as a financial intermediary. The banking firm serves as an intermediary in two important spheres, between borrower and lender, and between spenders and the monetary authorities. The basic economic formulation of borrower-lender behavior, the simple Fisherian consumption loan model, while beautiful in its simplicity, fail s to acknowledge any role for a non-neutral financial intermediary. The bank, in its second intermediary role, leads one to question the assumption of both neoclassical and Keynsian monetary theories that monetary changes are diffused across the economy (the proverbial monetary helicopter). Monetary policy effects on spending and investment will clearly be biased by the policies of the banks. The major focus of the present work is the development of a theory of credit rationing based upon the existence of risk reducing information technologies. Implicit in the analysis is a discussion of the role of the banking firm as something more than a tr·aditional financial intermediary. The present analysis will focus on the bank as an intermediary between borrower and lender. It will be shown that in .
Download or read book The Journal of Business Volume 54 Number 1 January 1981 written by and published by . This book was released on 1981 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Adverse Selection and Moral Hazard in Contract Law written by Nicole Petrick and published by GRIN Verlag. This book was released on 2009 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay aus dem Jahr 2005 im Fachbereich BWL - Recht, Note: 1,7, Higher School of Economics Moscow, Russia, Sprache: Deutsch, Abstract: Legal and economical interpretations of contract, contract law and contract theory, asymmetric information, adverse selection and moral hazard. Paper explains negative effects of adverse selection and moral hazard for the case of transaction costs and incomplete contracts and describes incentives to avoid adverse selection and moral hazard, such as signaling and deductibles as well as indemnity contracts and valued contracts.
Download or read book Allocation Information and Markets written by John Eatwell and published by Springer. This book was released on 1989-09-21 with total page 321 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is an extract from the 4-volume dictionary of economics, a reference book which aims to define the subject of economics today. 1300 subject entries in the complete work cover the broad themes of economic theory. This volume concentrates on the topic of allocation information and markets.
Download or read book Payment Schemes and Moral Hazard written by James Foust and published by . This book was released on 2013 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a principal-agent relationship, the principal offers a take-it-or-leave-it contract to the agent, who decides to either accept it or not. In game theory terminology, the principal agent relationship is a Stackelberg game in which the principal is the leader, proposing the contract, and the agent is the follower, choosing to accept or reject the proposal. Examples of such relationships are plentiful, such as a principal bank manager hiring an agent employee to work as a teller, a principal land-owner acting hiring an agent farmer to grow crops on her land, or an insurance company offering a home insurance plan to a homeowner. The principal-agent problem concerns how the principal should structure the proposed contract to best incentivize the agent to perform in the way the principal would prefer, taking into account that there are informational asymmetries between the principal and the agent due to the agent having some kind of "private information." Information asymmetries between principal and agent fall into two categories: the agent might have private information about their own characteristics, which gives rise to adverse selection problems; or the agent might have private information about what actions he takes after agreeing to the contract, which gives rise to moral hazard problems. In this paper, I focus on a model with moral hazard. The texts by Kreps and Salanié both offer good expositions of canonical adverse selection and moral hazard problems, which I used as a starting point for this paper. The survey of different extensions of the principal-agent model by Sappington provided a high-level guide to different sub-problems and primary sources. To motivate the model analyzed in this paper, suppose you own several tracts of land that are suitable for agriculture. You want to set up farms on these tracts of land, but you lack the time or expertise to farm the land yourself. You decide, then, to hire several farmers to set up and manage farms on your land. The farmers work year-round and, come harvest time, you pay each of them a sum of money based on their total production. Your challenge is to decide how much money to pay each farmer. Ideally, you would like to be able to pay each worker for the amount of effort that they put in. Unfortunately, you are only able to observe each farmer's output, and there are factors other than the farmer's effort level that affect output. For instance, the amount of rainfall is a random variable that affects all farmers' output equally, but which you are unable to observe. There are also idiosyncratic random variables unique to each farmer that represent the effects of soil condition, pests, and other similar concerns on the tract of land that farmer is working. All else equal, each farmer would prefer to work as little as possible, because they find working displeasurable. As the principal, however, you want the farmers to work as hard as is necessary to maximize your profits. The problem you face is how to structure the farmers' payment scheme so as to align their incentives with your own. The following analysis will compare individual contracts, in which each agent's payment is based only on the realized magnitude of their output, and tournament payment schemes, in which each agent's payment is based only on the ordinal ranking of their realized output relative to that of all other agents'. Much of the model notation as well as the results from Section 5 are an expanded exposition of results from a paper by Green and Stokey. Lazear and Rosen provided helpful intuition for the comparison of contracts and tournaments, and some of the results from earlier sections of the paper are due to Grossman and Hart.
Download or read book Computational Complexity written by Robert A. Meyers and published by Springer. This book was released on 2011-10-19 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Complex systems are systems that comprise many interacting parts with the ability to generate a new quality of collective behavior through self-organization, e.g. the spontaneous formation of temporal, spatial or functional structures. These systems are often characterized by extreme sensitivity to initial conditions as well as emergent behavior that are not readily predictable or even completely deterministic. The recognition that the collective behavior of the whole system cannot be simply inferred from an understanding of the behavior of the individual components has led to the development of numerous sophisticated new computational and modeling tools with applications to a wide range of scientific, engineering, and societal phenomena. Computational Complexity: Theory, Techniques and Applications presents a detailed and integrated view of the theoretical basis, computational methods, and state-of-the-art approaches to investigating and modeling of inherently difficult problems whose solution requires extensive resources approaching the practical limits of present-day computer systems. This comprehensive and authoritative reference examines key components of computational complexity, including cellular automata, graph theory, data mining, granular computing, soft computing, wavelets, and more.
Download or read book Reform for Sale written by Perrin Lefebvre and published by Cambridge University Press. This book was released on 2023-01-31 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: Lobbying competition is viewed as a delegated common agency game under moral hazard. Several interest groups try to influence a policy-maker who exerts effort to increase the probability that a reform be implemented. With no restriction on the space of contribution schedules, all equilibria perfectly reflect the principals' preferences over alternatives. As a result, lobbying competition reaches efficiency. Unfortunately, such equilibria require that the policy-maker pays an interest group when the latter is hurt by the reform. When payments remain non-negative, inducing effort requires leaving a moral hazard rent to the decision maker. Contributions schedules no longer reflect the principals' preferences, and the unique equilibrium is inefficient. Free-riding across congruent groups arises and the set of groups active at equilibrium is endogenously derived. Allocative efficiency and redistribution of the aggregate surplus is linked altogether and both depend on the set of active principals, as well as on the group size.
Download or read book Comprehensive Dissertation Index written by and published by . This book was released on 1984 with total page 808 pages. Available in PDF, EPUB and Kindle. Book excerpt: Vols. for 1973- include the following subject areas: Biological sciences, Agriculture, Chemistry, Environmental sciences, Health sciences, Engineering, Mathematics and statistics, Earth sciences, Physics, Education, Psychology, Sociology, Anthropology, History, Law & political science, Business & economics, Geography & regional planning, Language & literature, Fine arts, Library & information science, Mass communications, Music, Philosophy and Religion.
Download or read book A Handbook of Management Theories and Models for Office Environments and Services written by Rianne Appel-Meulenbroek and published by Routledge. This book was released on 2021-08-02 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although workplace design and management are gaining more and more attention from modern organizations, workplace research is still very fragmented and spread across multiple disciplines in academia. There are several books on the market related to workplaces, facility management (FM), and corporate real estate management (CREM) disciplines, but few open up a theoretical and practical discussion across multiple theories from different disciplines. Therefore, workplace researchers are not aware of all the angles from which workplace management and effects of workplace design on employees has been or could be studied. A lot of knowledge is lost between disciplines, and sadly, many insights do not reach workplace managers in practice. Therefore, this new book series is started by associate professor Rianne Appel-Meulenbroek (Eindhoven University of Technology, the Netherlands) and postdoc researcher Vitalija Danivska (Aalto University, Finland) as editors, published by Routledge. It is titled ‘Transdisciplinary Workplace Research and Management’ because it bundles important research insights from different disciplinary fields and shows its relevance for both academic workplace research and workplace management in practice. The books will address the complexity of the transdisciplinary angle necessary to solve ongoing workplace-related issues in practice, such as knowledge worker productivity, office use, and more strategic management. In addition, the editors work towards further collaboration and integration of the necessary disciplines for further development of the workplace field in research and in practice. This book series is relevant for workplace experts both in academia and industry. This second book in the series focuses on the role of workplace management in the organization and the tasks that workplace management needs to consider. The 18 theories that are presented in this book and applied to workplace research discuss management aspects from the organization’s perspective or dive deeper into issues related to people and/or building management. They all emphasize that workplace management is a complex matter that requires more strategic attention in order to add value for various stakeholders. The final chapter of the book describes a first step towards integrating the presented theories into an interdisciplinary framework for developing a grand workplace management theory.
Download or read book Essays on Value of Information Communication and Delegation in Principal and Agent Relationships written by Changyong Ham and published by . This book was released on 1988 with total page 202 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Moral Hazard in Health Insurance written by Amy Finkelstein and published by Columbia University Press. This book was released on 2014-12-02 with total page 161 pages. Available in PDF, EPUB and Kindle. Book excerpt: Addressing the challenge of covering heath care expenses—while minimizing economic risks. Moral hazard—the tendency to change behavior when the cost of that behavior will be borne by others—is a particularly tricky question when considering health care. Kenneth J. Arrow’s seminal 1963 paper on this topic (included in this volume) was one of the first to explore the implication of moral hazard for health care, and Amy Finkelstein—recognized as one of the world’s foremost experts on the topic—here examines this issue in the context of contemporary American health care policy. Drawing on research from both the original RAND Health Insurance Experiment and her own research, including a 2008 Health Insurance Experiment in Oregon, Finkelstein presents compelling evidence that health insurance does indeed affect medical spending and encourages policy solutions that acknowledge and account for this. The volume also features commentaries and insights from other renowned economists, including an introduction by Joseph P. Newhouse that provides context for the discussion, a commentary from Jonathan Gruber that considers provider-side moral hazard, and reflections from Joseph E. Stiglitz and Kenneth J. Arrow. “Reads like a fireside chat among a group of distinguished, articulate health economists.” —Choice
Download or read book Encyclopedia of Corporate Social Responsibility written by Samuel O. Idowu and published by Springer. This book was released on 2013-01-27 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The role of Corporate Social Responsibility in the business world has developed from a fig leaf marketing front into an important aspect of corporate behavior over the past several years. Sustainable strategies are valued, desired and deployed more and more by relevant players in many industries all over the world. Both research and corporate practice therefore see CSR as a guiding principle for business success. The “Encyclopedia of Corporate Social Responsibility” has been conceived to assist researchers and practitioners to align business and societal objectives. All actors in the field will find reliable and up to date definitions and explanations of the key terms of CSR in this authoritative and comprehensive reference work. Leading experts from the global CSR community have contributed to make the “Encyclopedia of Corporate Social Responsibility” the definitive resource for this field of research and practice.
Download or read book Simple Contracts with Adverse Selection and Moral Hazard written by Daniel Gottlieb and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study a principal-agent model with both moral hazard and adverse selection. Risk-neutral agents with limited liability have arbitrary private information about the distribution of outputs and the cost of effort. We obtain conditions under which the optimal mechanism offers a single contract to all types. These conditions are always satisfied, for example, if output is binary or if the distribution of outputs is multiplicatively separable and ordered by FOSD (if it is not ordered, the optimal mechanism offers at most two contracts). If, in addition, the marginal distribution satisfies the monotone likelihood ratio property, this single contract is a debt contract. Our model suggests that offering a single contract may be optimal in environments with adverse selection and moral hazard, where offering flexible menus of contracts provides gaming opportunities to the agent.
Download or read book Comprehensive Dissertation Index Business economics A K written by and published by . This book was released on 1984 with total page 808 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Organisation of the Firm written by Ram Mudambi and published by Routledge. This book was released on 2002-01-31 with total page 233 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years there has been a growth in work on the organization of the firm. The same period has also seen a corresponding rise in literature dealing with the organization of the multinational firm, but the two literatures have developed quite separately, even though insights from each have much to offer the other. This unique collection of essays from respected academics aims to bridge this gap, addressing questions of the theory of the firm and international business. The material is presented in three sections: * The first section deals with theoretical issues underpinning multinational enterprise. These are the issues of information, re-engineering and change management and international trade. * The second section concentrates on the inter-firm relationships of multinationals, assessing the interplay of co-operation and adversarial behaviour. * The third section deals with applications of the principles presented in the first two sections. The applications concern the defence equipment industry, the world automobile industry and corporate governance under European Union Regulations. The Organisation of the Firm is aimed at researchers and students in the field of international business, and is likely to appeal to advanced undergraduates and postgraduates, as well as academics.
