Strategic managerial incentives under ad
✍
Michel Cavagnac
📂
Article
📅
2005
🏛
John Wiley and Sons
🌐
English
⚖ 205 KB
## Abstract We extend the __strategic contract model__ where the owner designs incentive schemes for her manager before the latter takes output decisions. Firstly, we introduce private knowledge regarding costs __within__ each owner–manager pair. Under adverse selection, we show that delegation inv