Articles

Moral hazard contracts: Does one size fit all?

A.K. KOCH, E.-A. PEYRACHE

Economics Letters

September 2008, vol. 100, n°3, pp.399-401

Departments: Economics & Decision Sciences

Keywords: Anonymous contracts, Career concerns, Incentive contracts, Reputation

http://ssrn.com/abstract=949181


We show that firms' practice of anonymous contracts (“one-size-fits-all”) can be reconciled with standard agency theory if careers are marked by frequent transitions between employers, and agents have career concerns because complete long-term contracts are not feasible


JavaScriptSettings