Other-Regarding Principal and Moral Hazard PDF Download
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Author: Swapnendu Banerjee
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Using the classic moral hazard problem with limited liability we characterize the optimal contracts when an other-regarding principal interacts with a self-regarding agent. The optimal contract differs considerably when the principal is 'inequity averse' vis-a-vis the self-regarding case. Also the agent is generally (weakly) better-off under an 'inequity- averse' principal compared to a 'status seeking' principal.
Author: Swapnendu Banerjee
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Using the classic moral hazard problem with limited liability we characterize the optimal contracts when an other-regarding principal interacts with a self-regarding agent. The optimal contract differs considerably when the principal is 'inequity averse' vis-a-vis the self-regarding case. Also the agent is generally (weakly) better-off under an 'inequity- averse' principal compared to a 'status seeking' principal.
Author: Hideshi Itoh
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
The paper aims at obtaining new theoretical insights into organizational behavior by combining the standard moral hazard models of principal-agent relationships with theories of other-regarding (social or interdependent) preferences, in particular, inequity aversion theory. In the benchmark model, the principal and the agent are both risk neutral, while the agent is wealth constrained and hence the basic tradeoff between incentives and rent extraction arises. I show that other-regarding preferences interact with incentives in nontrivial ways. In particular, the principal is in general worse off as the agent cares more about the well-being of the principal. When there are multiple symmetric agents who care about each other's well-being, the principal can optimally exploit their other-regarding nature by designing an appropriate interdependent contract such as a "fair" team contract or a relative performance contract that creates inequality when their performance outcomes are different. The optimal contract depends on the nature of the agents' other-regarding preferences. The approach taken in this paper can shed light on issues on endogenous preferences within organizations, as suggested by sociologists and organizational economists.
Author: John Eatwell
Publisher: Springer
ISBN: 1349202150
Category : Business & Economics
Languages : en
Pages : 321
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Book Description
This is an extract from the 4-volume dictionary of economics, a reference book which aims to define the subject of economics today. 1300 subject entries in the complete work cover the broad themes of economic theory. This volume concentrates on the topic of allocation information and markets.
Author: Amy Finkelstein
Publisher: Columbia University Press
ISBN: 0231538685
Category : Medical
Languages : en
Pages : 161
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Book Description
Addressing the challenge of covering heath care expenses—while minimizing economic risks. Moral hazard—the tendency to change behavior when the cost of that behavior will be borne by others—is a particularly tricky question when considering health care. Kenneth J. Arrow’s seminal 1963 paper on this topic (included in this volume) was one of the first to explore the implication of moral hazard for health care, and Amy Finkelstein—recognized as one of the world’s foremost experts on the topic—here examines this issue in the context of contemporary American health care policy. Drawing on research from both the original RAND Health Insurance Experiment and her own research, including a 2008 Health Insurance Experiment in Oregon, Finkelstein presents compelling evidence that health insurance does indeed affect medical spending and encourages policy solutions that acknowledge and account for this. The volume also features commentaries and insights from other renowned economists, including an introduction by Joseph P. Newhouse that provides context for the discussion, a commentary from Jonathan Gruber that considers provider-side moral hazard, and reflections from Joseph E. Stiglitz and Kenneth J. Arrow. “Reads like a fireside chat among a group of distinguished, articulate health economists.” —Choice
Author: Anjan V. Thakor
Publisher:
ISBN:
Category :
Languages : en
Pages : 178
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Book Description
Author: Georges Dionne
Publisher: Springer Science & Business Media
ISBN: 0792392043
Category : Business & Economics
Languages : en
Pages : 748
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Book Description
Economic and financial research on insurance markets has undergone dramatic growth since its infancy in the early 1960s. Our main objective in compiling this volume was to achieve a wider dissemination of key papers in this literature. Their significance is highlighted in the introduction, which surveys major areas in insurance economics. While it was not possible to provide comprehensive coverage of insurance economics in this book, these readings provide an essential foundation to those who desire to conduct research and teach in the field. In particular, we hope that this compilation and our introduction will be useful to graduate students and to researchers in economics, finance, and insurance. Our criteria for selecting articles included significance, representativeness, pedagogical value, and our desire to include theoretical and empirical work. While the focus of the applied papers is on property-liability insurance, they illustrate issues, concepts, and methods that are applicable in many areas of insurance. The S. S. Huebner Foundation for Insurance Education at the University of Pennsylvania's Wharton School made this book possible by financing publication costs. We are grateful for this assistance and to J. David Cummins, Executive Director of the Foundation, for his efforts and helpful advice on the contents. We also wish to thank all of the authors and editors who provided permission to reprint articles and our respective institutions for technical and financial support.
Author: Gary J. Miller
Publisher: Cambridge University Press
ISBN: 9780521457699
Category : Business & Economics
Languages : en
Pages : 276
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Book Description
Managerial Dilemmas extends the use of analytical techniques from organisational economics to the spheres of organisational culture and leadership in politics and business.
Author: Martin Peterson
Publisher: Oxford University Press
ISBN: 0190652276
Category : Philosophy
Languages : en
Pages : 265
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Book Description
Autonomous cars, drones, and electronic surveillance systems are examples of technologies that raise serious ethical issues. In this analytic investigation, Martin Peterson articulates and defends five moral principles for addressing ethical issues related to new and existing technologies: the cost-benefit principle, the precautionary principle, the sustainability principle, the autonomy principle, and the fairness principle. It is primarily the method developed by Peterson for articulating and analyzing the five principles that is novel. He argues that geometric concepts such as points, lines, and planes can be put to work for clarifying the structure and scope of these and other moral principles. This geometric account is based on the Aristotelian dictum that like cases should be treated alike, meaning that the degree of similarity between different cases can be represented as a distance in moral space. The more similar a pair of cases are from a moral point of view, the closer is their location in moral space. A case that lies closer in moral space to a paradigm case for some principle p than to any paradigm for any other principle should be analyzed by applying principle p. The book also presents empirical results from a series of experimental studies in which experts (philosophers) and laypeople (engineering students) have been asked to apply the geometric method to fifteen real-world cases. The empirical findings indicate that experts and laypeople do in fact apply geometrically construed moral principles in roughly, but not exactly, the manner advocates of the geometric method believe they ought to be applied.
Author: Rick Antle
Publisher: Springer Science & Business Media
ISBN: 0387303995
Category : Business & Economics
Languages : en
Pages : 334
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Book Description
The integration of accounting and the economics of information developed by Joel S. Demski and those he inspired has revolutionized accounting thought. This volume collects papers on accounting theory in honor of Professor Demski. The book also contains an extensive review of Professor Demski’s own contributions to the theory of accounting over the past four decades.
Author: Shinsuke Ikeda
Publisher: Springer
ISBN: 4431555013
Category : Business & Economics
Languages : en
Pages : 668
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Book Description
This book collects important contributions in behavioral economics and related topics, mainly by Japanese researchers, to provide new perspectives for the future development of economics and behavioral economics. The volume focuses especially on economic studies that examine interactions of multiple agents and/or market phenomena by using behavioral economics models. Reflecting the diverse fields of the editors, the book captures broad influences of behavioral economics on various topics in economics. Those subjects include parental altruism, economic growth and development, the relative and permanent income hypotheses, wealth distribution, asset price bubbles, auctions, search, contracts, personnel management and market efficiency and anomalies in financial markets. The chapter authors have added newly written addenda to the original articles in which they address their own subsequent works, supplementary analyses, detailed information on the underlying data and/or recent literature surveys. This will help readers to further understand recent developments in behavioral economics and related research.
