On the existence of optimal contract mechanisms for incomplete information principal-agent models

Article Abstract:

Optimal contract selection mechanisms for incomplete information principal-agent models are affected by incentive compatibility constraints. These constraints, which induces accurate reporting from agents, imposes technical problems in attaining existence results when based on general information convergence. It is concluded that reformulation of incentive compatibility constraints and micro-based information convergence are needed to determine the existence of optimal contract selection mechanisms.

Models, Economics, Contracts, Information theory, Game theory, Information theory in economics

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On the existence of nonoptimal equilibria in dynamic stochastic economies

Article Abstract:

A study addresses the question of a stationary equilibrium's existence in distorted variants of the conventional neo-classical growth model. The conditions ensure the nontrivial equilibrium's presence due to the simplicity and intuitive appeal of the economic class being studied. The existence proof developed is basic to the study. Economies with distortional taxation, endogenous growth with externalities and monopolistic competition are shown to fall under the developed framework.

Analysis, Stochastic analysis, Economic research, Equilibrium (Economics)

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