IDEAS home Printed from https://ideas.repec.org/h/spr/sprfcp/978-3-642-14200-0_1.html
   My bibliography  Save this book chapter

Principal–Agent Problem

Author

Listed:
  • Jakša Cvitanić

    (California Institute of Technology
    EDHEC Business School)

  • Jianfeng Zhang

    (University of Southern California)

Abstract

A Principal–Agent problem is a problem of optimal contracting between two parties, one of which, namely the agent, may be able to influence the value of the outcome process with his actions. What kind of contract is optimal typically depends on whether those actions are observable/contractable or not, and on whether there are characteristics of the agent that are not known to the principal. There are three main types of these problems: (i) the first best case, or risk sharing, in which both parties have the same information; (ii) the second best case, or moral hazard, in which the action of the agent is hidden or not contractable; (iii) the third best case or adverse selection, in which the type of the agent is hidden.

Suggested Citation

Handle: RePEc:spr:sprfcp:978-3-642-14200-0_1
DOI: 10.1007/978-3-642-14200-0_1
as

Download full text from publisher

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a
for a similarly titled item that would be available.

More about this item

Keywords

;
;
;
;
;

Statistics

Access and download statistics

Corrections

All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprfcp:978-3-642-14200-0_1. See general information about how to correct material in RePEc.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

We have no bibliographic references for this item. You can help adding them by using this form .

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.