Teaching Tools: A Simple Principal-Agent Experiment for the Classroom
In this note, the authors describe a simple, flexible, and instructive moral hazard experiment. It can be used in a variety of classes, including principles classes, to illustrate the basic incentive conflicts in principal-agent interactions, the importance of information, and the power of reputational enforcement. Copyright 1997 by Oxford University Press.
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Volume (Year): 35 (1997)
Issue (Month): 2 (April)
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