Optimism, overconfidence, and moral hazard
I revisit the standard moral-hazard model, in which an agent’s preference over contracts is rooted in costly effort choice. I characterise the behavioural content of the model in terms of empirically testable axioms, and show that the model’s parameters are identified. I propose general behavioural...
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| Format: | Journal article |
| Language: | English |
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University of Chicago Press
2024
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