Solution-What are the essential features of a

What are the essential features of a principal-agent problem

Reference no: EM13963821

1- What are the essential features of a principal-agent problem?

2- Why is "hidden information" a crucial element of any principal-agent problem?

3- Show that, optimally in a principal-agent problem, the agent is rewarded if the signal observed is likely given the action the principal desires of the agent, and unlikely given any different action, while the agent is "punished" in the opposite situation.

4- In the context of a principal-agent problem, explain the "incentive intensity principle" and the "equal compensation principle".

Reference no: EM13963821

Questions Cloud

Why risk can be insured against but uncertainty cannot : Savings accounts pay very low rates of interest. The average return on the stock market is about 10-12 %, in the long run. Why would anyone put money into a savings account.

Complete the following table by calculating du, w, and q : Complete the following table by calculating DU, W, and Q (including the algebraic signs) for each of the four steps and for the whole process.

What is the minimum uncertainty in the position of photon : The kinetic energy of a nonrelativistic particle can be written in terms of its momentum as K = p ^2 /2 m . Planck's constant is 6.63 × 10^-34 J · s. What is the minimum kinetic energy of a proton confined within a nucleus having a diameter of 6 ×..

Is the proposed stead-state operation feasible : Is the proposed stead-state operation feasible - What is the corresponding length of wire that may be used in the heater for a maximum available voltage of 110V? What is the power rating of the heater?

What are the essential features of a principal-agent problem : Show that, optimally in a principal-agent problem, the agent is rewarded if the signal observed is likely given the action the principal desires of the agent, and unlikely given any different action, while the agent is "punished" in the opposite s..

Show that the average electron energy for the 2d gas : Show that the average electron energy for the two dimensional gas at 0 K is E_f/2.

Why was important that a bar be kept constant : The first international standard of length was a metal bar kept at the international Bureau of Weights and Measures. One meter length was defined to be a distance between two lines engraved near the end of the bar. Why was important that a bar be ..

Calculate the value ok k at this temperature : Use the molar bond enthalpies above to show the overall enthalpy change for reaction one is -93kj mol^-1 show all steps in the calculation clearly.

Brief description of rutherford''s model of the atom : According to the classical theory of physics, the energy radiated by a blackbody approaches infinity as the wavelength of the emitted light approaches zero. Why was this considered a problem for classical physics?

User Account

All Pages

What are the essential features of a principal-agent problem

Reference no: EM13963821

Reference no: EM13963821

Questions Cloud

Reviews

Write a Review

Physics Questions & Answers

Find the magnitude of the resulting magnetic field

Find the equivalent resistance

What is the electric field at the location

What is the maximum displacement of the bridge deck

What is the magnitude of the current in the wire

Blackbody

Gravity conveyor

Calculate the dc voltage

Quadrupole moments in the shell model

Determine the tension in each string

Introductory mechanics: dynamics

Evaluate maximum altitude

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT