Principle – Agent Model for Sleeping Partnership Moral hazard
Game theory has a significant role in contemporary orthodox economics. This theory studies the strategic behavior of players. So strategic interaction is the key point in the games theory. Principalagent model is an application of the theory. This model is applied when a job or an activity is deliv...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2011-12-01
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| Series: | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| Subjects: | |
| Online Access: | https://joer.atu.ac.ir/article_2640_fd46195ce9b23e194e22fa051a669841.pdf |
| _version_ | 1797375677088923648 |
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| author | Mohammad Hadi Zahidi Vafa seyyed hasan ghavami |
| author_facet | Mohammad Hadi Zahidi Vafa seyyed hasan ghavami |
| author_sort | Mohammad Hadi Zahidi Vafa |
| collection | DOAJ |
| description | Game theory has a significant role in contemporary orthodox
economics. This theory studies the strategic behavior of players. So
strategic interaction is the key point in the games theory. Principalagent
model is an application of the theory. This model is applied
when a job or an activity is delivered to an agent by a firm or another
agent called the principal. Naturally the terms and conditions
including the rights and obligations of two sides are elaborated in the
contract. Depending on whether the information on exact details of the
subject and the terms are the same or not, different models are
developed. One of the most important financing instruments in noninterest
banking as a main field of Islamic Economics is profit-loss sharing contracts among
which we can name sleeping partnership. The subject matter of sleeping partnership
is trade in which a capital owner finances the money needed by the agent to start a business
which is based on profit-loss sharing. This paper tries to construct an analytical model
to explain the sleeping partnership by appling principal– agent model with asymmetric
information case which is causing adverse selection .In this paper we showed that Islamic
finance instruments (sleeping partnership) in the spirit of profit-loss sharing can be explained
through the modern achievements of contemporary economics and we can analyze sleeping partnership with the help of game theory method. |
| first_indexed | 2024-03-08T19:27:53Z |
| format | Article |
| id | doaj.art-c3fe41b745ea41378eaf2f4b37f122bd |
| institution | Directory Open Access Journal |
| issn | 1735-210X 2476-6453 |
| language | fas |
| last_indexed | 2024-03-08T19:27:53Z |
| publishDate | 2011-12-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| spelling | doaj.art-c3fe41b745ea41378eaf2f4b37f122bd2023-12-26T07:57:40ZfasAllameh Tabataba'i University PressFaslnāmah-i Pizhūhish/Nāmah-i Iqtisādī1735-210X2476-64532011-12-0111432392552640Principle – Agent Model for Sleeping Partnership Moral hazardMohammad Hadi Zahidi Vafa0seyyed hasan ghavami1Faculty member of Islamic Education and Economics, Imam Sadeq UniversityPh. D student, Imam Sadeq UniversityGame theory has a significant role in contemporary orthodox economics. This theory studies the strategic behavior of players. So strategic interaction is the key point in the games theory. Principalagent model is an application of the theory. This model is applied when a job or an activity is delivered to an agent by a firm or another agent called the principal. Naturally the terms and conditions including the rights and obligations of two sides are elaborated in the contract. Depending on whether the information on exact details of the subject and the terms are the same or not, different models are developed. One of the most important financing instruments in noninterest banking as a main field of Islamic Economics is profit-loss sharing contracts among which we can name sleeping partnership. The subject matter of sleeping partnership is trade in which a capital owner finances the money needed by the agent to start a business which is based on profit-loss sharing. This paper tries to construct an analytical model to explain the sleeping partnership by appling principal– agent model with asymmetric information case which is causing adverse selection .In this paper we showed that Islamic finance instruments (sleeping partnership) in the spirit of profit-loss sharing can be explained through the modern achievements of contemporary economics and we can analyze sleeping partnership with the help of game theory method.https://joer.atu.ac.ir/article_2640_fd46195ce9b23e194e22fa051a669841.pdfsleeping partnershipprincipal-agent modelsymmetric informationasymmetric informationadverse selection |
| spellingShingle | Mohammad Hadi Zahidi Vafa seyyed hasan ghavami Principle – Agent Model for Sleeping Partnership Moral hazard Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī sleeping partnership principal-agent model symmetric information asymmetric information adverse selection |
| title | Principle – Agent Model for Sleeping Partnership Moral hazard |
| title_full | Principle – Agent Model for Sleeping Partnership Moral hazard |
| title_fullStr | Principle – Agent Model for Sleeping Partnership Moral hazard |
| title_full_unstemmed | Principle – Agent Model for Sleeping Partnership Moral hazard |
| title_short | Principle – Agent Model for Sleeping Partnership Moral hazard |
| title_sort | principle agent model for sleeping partnership moral hazard |
| topic | sleeping partnership principal-agent model symmetric information asymmetric information adverse selection |
| url | https://joer.atu.ac.ir/article_2640_fd46195ce9b23e194e22fa051a669841.pdf |
| work_keys_str_mv | AT mohammadhadizahidivafa principleagentmodelforsleepingpartnershipmoralhazard AT seyyedhasanghavami principleagentmodelforsleepingpartnershipmoralhazard |