| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5059335 | Economics Letters | 2013 | 4 Pages |
Abstract
We analyze a task-assignment model in which a principal assigns a task to one of two agents depending on future states. If the agents have concave utility, the principal assigns the task to them contingent on the state. We show that if the agents are loss averse, a state-independent assignment-assigning the task to a single agent in all states-can be optimal even when the principal can write a contingent contract at no cost.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Kohei Daido, Kimiyuki Morita, Takeshi Murooka, Hiromasa Ogawa,