Optimal dynamic contracting: The first-order approach and beyond
We explore the conditions under which the “first-order approach” (FO approach) can be used to characterize profit maximizing contracts in dynamic principal–agent models. The FO approach works when the resulting FO-optimal contract satisfies a particularly strong form of monotonicity in types, a cond...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Society for Economic Theory
2019
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| Subjects: | |
| Online Access: | View Fulltext in Publisher |