Název: The demand and supply of favours in dynamic relationships
Autoři: Forand, J. G. ; Zápal, Jan
Typ dokumentu: Výzkumné zprávy
Rok: 2017
Jazyk: eng
Edice: CERGE-EI Working Paper Series, svazek: 605
Abstrakt: We characterise the optimal demand and supply of favours in a dynamic principal-agent model of joint production, in which heterogenous project opportunities arrive stochastically and are publicly observed upon arrival, utility from these projects is non-transferable and commitment to future production is limited. Our results characterise the optimal dynamic contract, and we establish that the principal’s supply of favours (the production of projects that benefit the agent but not the principal) is backloaded, that the principal’s demand for favours (the production of projects that benefit the principal but not the agent) is frontloaded, and that the production of projects is ordered by their comparative advantage, that is, by their associated efficiency in extracting (for demanded projects) and providing (for supplied projects) utility to the agent. Furthermore, we\nprovide an exact construction of the optimal contract when project opportunities follow a Markov process.
Klíčová slova: dynamic contracts; team production; trading favours

Instituce: Národohospodářský ústav AV ČR (web)
Informace o dostupnosti dokumentu: Dokument je dostupný na externích webových stránkách.
Externí umístění souboru: http://www.cerge-ei.cz/pdf/wp/Wp605.pdf
Původní záznam: http://hdl.handle.net/11104/0274975

Trvalý odkaz NUŠL: http://www.nusl.cz/ntk/nusl-367371


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