Article ID: | iaor19942156 |
Country: | United States |
Volume: | 40 |
Issue: | 4 |
Start Page Number: | 484 |
End Page Number: | 495 |
Publication Date: | Apr 1994 |
Journal: | Management Science |
Authors: | Arya Anil, Fellingham John C., Young Richard A. |
Keywords: | investment, organization |
This paper analyzes the role of the agent’s bankruptcy constraints in multiperiod principal-agent models with asymmetric information. Conditions are provided under which commitment to a long-term contract involving