
Summary: This paper studies a dynamic agency problem which includes limited liability, moral hazard, and adverse selection. The paper develops a robust approach to dynamic contracting based on calibrating the incentive properties of simple benchmark contracts that are attractive but infeasible, due to limited liability constraints. The resulting dynamic contracts are detail-free and satisfy robust performance bounds independently of the underlying process for returns, which need not be i.i.d. or even ergodic.
Labor market, contracts, approachability, detail-free contracts, dynamic contracts, high-watermark contracts, robust contracts
Labor market, contracts, approachability, detail-free contracts, dynamic contracts, high-watermark contracts, robust contracts
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| influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | Top 10% | |
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