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Moral hazard, insurance and some collusion: A comment on Alger and Ma

✍ Scribed by Maike Niemann; Jörg Schiller

Book ID: 116634964
Publisher: Elsevier Science
Year: 2006
Tongue: English
Weight: 63 KB
Volume: 60
Category: Article
ISSN: 0167-2681
DOI: 10.1016/j.jebo.2004.02.006

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A key question in the economics of organization is whether it is possible to induce a group of employees to produce some quota of labor desired by the director of their organization. Holmstr6m (1982) argued that it is possible to achieve the desired result via a simple incentive scheme. The essence