Article ID Journal Published Year Pages File Type
5059657 Economics Letters 2012 4 Pages PDF
Abstract
► A risk-neutral agent exerts non-verifiable efforts in two tasks. ► Principal-agent contracts are subject to limited liability. ► Under independent tasks, a debt contract in each task is optimal. ► In the presence of effort substitution effect, a non-debt contract is optimal.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
On the existence of share contracts under limited liability
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