Agency Contracts under Maximum-Entropy

Agency Contracts under Maximum-Entropy

This article proposes the application of the maximum-entropy principle (MEP) to agency contracting (where a <i>principal</i> hires an <i>agent</i> to make decisions on their behalf) in situations where the principal and agent only have partial knowledge on the probability dis...

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Bibliographic Details
Main Authors: Oscar Gutiérrez, Vicente Salas-Fumás
Format: Article
Language:English
Published: MDPI AG 2021-07-01
Series:Entropy
Subjects:
maximum-entropy
agency relationship
moral hazard
first-order approach
likelihood ratio
worst-case scenario
Online Access:https://www.mdpi.com/1099-4300/23/8/957

Internet

https://www.mdpi.com/1099-4300/23/8/957

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