Common agency with risk-averse agent

B-Tier
Journal: Journal of Mathematical Economics
Year: 2010
Volume: 46
Issue: 1
Pages: 38-49

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In a common agency model with a risk-averse agent and private information distortion in the equilibrium policy from the first-best is greater compared to the case of a risk-neutral agent. The principals are unable to screen completely the agent's preferences if he is sufficiently risk-averse: there is bunching in the contract. The contribution schedules keep track of informational externality. However, when the coefficient of risk-aversion goes to zero the contributions become truthful as in the complete information case.

Technical Details

RePEc Handle
repec:eee:mateco:v:46:y:2010:i:1:p:38-49
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29