By Shuo Zeng, Moshe Dror
This ebook examines contractual suggestions for a functionality established agreement among an proprietor of a profit producing unit and a fix agent for such unit. The framework of the research is that of economists' principal-agent challenge. The contractual techniques of a central and an agent are modeled as a Markov approach with an undetermined time horizon. For a probability impartial valuable, the authors determine the stipulations less than which a imperative contracts with a risk-neutral, risk-averse, or risk-seeking agent and derive the principal's optimum supply including the agent's optimum carrier potential reaction. In essence, the publication offers an intensive formulating research of principal-agent contracts given any exogenous parameter values. eventually a small variety of formulation conceal a wide spectrum of principal-agent conditions.
Read or Download Formulating Principal-Agent Service Contracts for a Revenue Generating Unit PDF
Similar nonfiction_13 books
This quantity comprises unique submissions at the improvement and alertness of molecular imaging computing. The editors invited authors to put up top of the range contributions on quite a lot of themes together with, yet no longer restricted to:• photo Synthesis & Reconstruction of Emission Tomography (PET, SPECT) and different Molecular Imaging Modalities• Molecular Imaging Enhancement• info research of medical & Pre-clinical Molecular Imaging• Multi-Modal photo Processing (PET/CT, PET/MR, SPECT/CT, and so on.
The administration of organizational assets is intensely tricky. Managers face critical and intricate demanding situations whilst dealing with the mandatory assets for the good thing about their association. This e-book provides a distinct strategy that goals to take on those administration demanding situations. This method relies on 4 propositions that jointly shape an exceptional framework for the administration of organizational assets.
Institutional affects on enterprise Internationalization addresses numerous facets of the investigated phenomenon, delivering an perception within the position of the sorts of capitalism at the globalization of industrial actions around the world.
- Poetry As Enchantment
- [(Corporate Social Responsibility and Regulatory Governance: Towards Inclusive Development? )] [Author: Peter Utting] [Dec-2009]
- Timber and Timber Trees, Native and Foreign: Thomas Laslett [ 1875 ]
- Gunflint Lodge Cookbook: Elegant Northwoods Dining by Ron Berg (1997-08-13)
- Macroeconometric Systems: Construction, Validation and Applications
Additional resources for Formulating Principal-Agent Service Contracts for a Revenue Generating Unit
12 depicts the shape of u. / when Á 1 and the value of p falls in different ranges. The proof when Á 1 is depicted in Fig. 13. 1, u. / is decreasing with respect to 0. 3) u. w; p// D w p. 0; p/: u. w; p// < 0, therefore the agent rejects the contract. 52 4 Risk-Averse Agent w ∈ (0, p) Reject. w≥p μ∗ = 0 p ∈ (0, 4p1 ] η≥1 w ∈ (0, p) Reject. w≥p μ∗ = 0 w ∈ (0, w4 ) Reject. p ∈ (4p1 , p4 ) p = p4 p > 4p1 μ∗ = 0 or μ∗ = w ≥ w4 w∈ 0, 2 (1 + η)pλ − λ (1 + η)p4 λ − λ Reject. p > p4 w≥2 Fig. 23 when Á Subcase w offered.
Du. / D p and lim D ! d 4 1 Á d 2 du. 1 Á/p D d . 1 Á/p . C /3 > : du. 1 C Á/p D d . C /2 du. C1 d lim 1, lim 1 and ! C Â 1CÁ du. / p D d 4 d2 u. 1 C Á/p <0 . C /3 The above derivatives indicate the direction of monotonicity and the concavity/convexity of function u. / over Œ0; / and . ; C1/. 1 summarizes b a Ã 3 ;1 5 Â Â 1 1 4 Á 1CÁ ; Á p2 4 4 ; 1CÁ 1 Á Â Ã 4 p2 ; C1 1 Á Â 4 p 2 0; 1CÁ Â 4 p2 ; 1CÁ 1 Á Â 4 p2 ; 1 Á 1 Á Â Ã 4 p2 ; C1 1 Á Â 4 p 2 0; 1CÁ Â Ã 4 p2 ; C1 1CÁ p2 Â p 2 0; b a Concave Concave Convex Convex >0 >0 <0 <0 Concave <0 Concave Concave >0 Ä0 Concave >0 Concave Concave Ä0 >0 u.
10) , then p in case the principal makes an offer, the agent accepts the contract and . 1 C Á/p . 1 C Á/p3 if r > p3 . Since @…P =@w D 1 < 0, therefore w D w3 . p3 / (see Eqs. 16)). 1 C 2Á/x C r=x/. 13, r3 > p3 > r1 , therefore we examine the following subcases. 17 part (a), p D p3 . w ; p // Ä 0, therefore the principal does not propose a contract. 17 part (a), p D p3 . 1 Á/p3 . 17 part (a), p D p3 . p3 / D p r1 /= p3 > 0, therefore the principal proposes a contract with w D w3 and p . 1 C Á/ C .