English
 
Help Privacy Policy Disclaimer
  Advanced SearchBrowse
  1. View item / 
  2. Item Summary

Item

ITEM ACTIONSEXPORT
Add to Basket
  Local TagsRelease HistoryDetailsSummary

Released
Paper

Moral Hazard and Ambiguity

MPS-Authors
/persons/resource/persons183220

Weinschenk,  Philipp
Max Planck Institute for Research on Collective Goods, Max Planck Society;

External Resource

http://www.coll.mpg.de/pdf_dat/2010_39online.pdf
(Preprint)

Fulltext (restricted access)
There are currently no full texts shared for your IP range.
Fulltext (public)
There are no public fulltexts stored in PuRe
Supplementary Material (public)
There is no public supplementary material available
Citation

Weinschenk, P. (2010). Moral Hazard and Ambiguity.


Cite as: https://hdl.handle.net/11858/00-001M-0000-0028-6FD8-3
Abstract
We consider a principal-agent model with moral hazard where the agent’s knowledge about the performance measure is ambiguous and he is averse towards ambiguity. We show that the principal may optimally provide no incentives or contract only on a subset of all informative performance measures. That is, the Informativeness Principle does not hold in our model. These results stand in stark contrast to the ones of the orthodox theory, but are empirically of high relevance.