The presence of moral hazard in budget breaking

B-Tier
Journal: Public Choice
Year: 1989
Volume: 61
Issue: 3
Pages: 261-267

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

It is possible that a budget breaking incentive scheme may not solve the problem of moral hazard in team production, due to an incentive for a principal to cheat on such an agreement. This is a problem common to incentive schemes which result in an unbalanced budget, which include among them processes designed to reveal demand for public goods. This paper shows the conditions under which cheating is possible, and designs a payment scheme for the principal which is free of any cheating incentive. Copyright Kluwer Academic Publishers 1989

Technical Details

RePEc Handle
repec:kap:pubcho:v:61:y:1989:i:3:p:261-267
Journal Field
Public
Author Count
1
Added to Database
2026-01-25