• 8040com
  • 8040com金融研究院
  • 新普京娱乐
  • 网投平台
Contractual Externalities in Times of Uncertain Productivity
发布时间:2012-12-07
Topic:
Contractual Externalities in Times of Uncertain Productivity
Time:
星期四,2012-12-07 10:30-12:00
Venue:
Room 505, Datong Building West Huaihai Road 211, SAIF
Speaker:
Emre Ozdenoren

Contractual Externalities in Times of Uncertain Productivity

We propose a theory of contractual externality when an industry experiences a large productivity shock. We examine a continuum of principal-agent pairs. Each agent exerts costly hidden effort. The productivity of effort is subject to a shock common to all agents in the industry. Principals set contracts based on noisy signals about both agent-specific- and the industry average outcomes. When the latter signal is very noisy due to the large uncertainty associated with the industry shock, contracts are effectively weighted towards the more precise relative performance information. This creates complementarities in agents’ effort choices. Externalities arise because principals do not internalize the impact of their incentive provision on the average effort choice. If the expected productivity is high, risk-averse principals over-incentivise agents, triggering a rat-race in effort exertion, resulting in over-investment in effort and excessive risk relative to the second-best. The opposite occurs when the expected productivity is low.



研究成果
+更多


《上海国际金融中心建设研究报告》发布



研究领域
+更多
  • 8040com
  • 宏观金融研究中心
  • 中国私募证券投资研究中心
  • 企业金融研究中心
  • 风险管理研究中心
  • 品牌研究中心
  • 中国金融法治研究中心
  • 金融科技研究中心
  • 科创金融研究中心
  • 资产管理与财富管理研究所
  • 8040com-凯银投资
    联合研究实验室
  • 智慧医院科技金融研究实验室
XML 地图 | Sitemap 地图