This paper aims to explore incentive issues and characteristics of optimal contract schemes
for subsidizing public transit services under double moral hazard, which refers to situations …

A century ago, Alfred Marshall demonstrated the inefficiency associated with farmers
receiving only a portion of their marginal product. Farmers will supply less labor than under …

This paper theoretically studies pharmaceutical innovation collaborations, where
heterogeneous firms compete for heterogeneous academics. At an interim stage, the firm …

Moral hazard (also called hidden action), the informational asymmetry related to the agent's
behavior during a relationship, has been a long-time concern for insurance. It is said that the …

The theory of incentives and matching theory can complement each other. In particular,
matching theory can be a tool for analyzing optimal incentive contracts within a general …

Poor farm-households are less keen to adopt high risk/high return technologies than rich
households. Yet, the poor are more vulnerable to income shocks. We develop a model of …

This article studies the effect of limited commitment on sorting when two sides of a
frictionless market form pairs to share risk. On each side, agents are identical except for their …

This paper determines the optimal tenurial contract between a monopoly landlord and a
tenant protected by limited liability under both adverse selection (based on the tenant's …

We consider a stylized incentive management problem over an infinite time horizon, where
the principal hires an agent to provide services to customers. Customers request service in …

This paper develops an estimable model to quantify the efficiency loss arising from both risk
sharing and talent misallocation due to the presence of moral hazard in the market for CEOs …