Limited Liability and Bonus Contracts

作者: Son Ku Kim

DOI: 10.1111/J.1430-9134.1997.00899.X

关键词:

摘要: This paper studies the nature of incentive contracts between a risk-neutral principal and agent under constraint that agent's liability is limited. A necessary sufficient condition derived for existence first-best contract this constraint, bonus-based shown to be most efficient contractual form. Implications bonus are also discussed.

参考文章(6)
Bengt Holmstrom, Moral Hazard and Observability The Bell Journal of Economics. ,vol. 10, pp. 74- 91 ,(1979) , 10.2307/3003320
Paul R. Milgrom, Good News and Bad News: Representation Theorems and Applications The Bell Journal of Economics. ,vol. 12, pp. 380- 391 ,(1981) , 10.2307/3003562
David Sappington, Limited Liability Contracts between Principal and Agent Journal of Economic Theory. ,vol. 29, pp. 1- 21 ,(1983) , 10.1016/0022-0531(83)90120-5
Milton Harris, Artur Raviv, Optimal incentive contracts with imperfect information Journal of Economic Theory. ,vol. 20, pp. 231- 259 ,(1979) , 10.1016/0022-0531(79)90073-5
Robert D Innes, Limited liability and incentive contracting with ex-ante action choices Journal of Economic Theory. ,vol. 52, pp. 45- 67 ,(1990) , 10.1016/0022-0531(90)90066-S
GEORGE P. BAKER, MICHAEL C. JENSEN, KEVIN J. MURPHY, Compensation and Incentives: Practice vs. Theory Journal of Finance. ,vol. 43, pp. 593- 616 ,(1988) , 10.1111/J.1540-6261.1988.TB04593.X