The curse of long horizons
We study dynamic moral hazard when the principal can only commit to spot contracts. The principal and agent are ex ante symmetrically uncertain about the difficulty of the job, and update their beliefs upon observing output. Since the agent's effort is private, he has an additional incentive to...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier B.V.
2019
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| Subjects: | |
| Online Access: | View Fulltext in Publisher |