讲义不对称信息.pptVIP

Incentives Contracting the principal’s problem is to subject to (participation constraint) Incentives Contracting the principal’s problem is to subject to (participation constraint) Substitute for and solve Incentives Contracting the principal’s problem is to subject to (participation constraint) The principal’s profit is maximized when Substitute for and solve Incentives Contracting The contract that maximizes the principal’s profit insists upon the worker effort level e* that equalizes the worker’s marginal effort cost to the principal’s marginal payoff from worker e