'Insurance reversal' in an agency model with uncertainty

Article Abstract:

Knightian uncertainty can be introduced into a model of two-states agency, and this can result in uncertainties about probability distributions. In cases where agents are optimistic about production activity outcomes, and principles are pesimistics, principals can fully insure themselves for a range of states of nature. This finding illuminates the role of uncertainty in principal-agent schemes, and points to the need for further research on Knightian uncertainty and equilibrium configurations.

Insurance, Insurance Carriers and Related Activities, INSURANCE CARRIERS, Economic aspects, Insurance industry, Uncertainty, Risk (Insurance)

---

Mechanism sufficient statistic in the risk-neutral agency problem

Article Abstract:

Research demonstrates that dichotomic monitoring systems should be used in principal-agent framework analysis. A mathematic model used to describe action space is illustrated and explained. Risk-neutral analysis is discussed.

Analysis, Economics, Statistics, Statistics (Data)

---

Similar abstracts:

• Abstracts: Monetary policy uncertainty and inflation: the role of central bank accountability. The recent failure of U.S. monetary policy
• Abstracts: Risky debt, managerial ownership and capital structure: new fundamental doubts on the classical agency approach

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.