Multiple-task and multiple-agent models: Incentive contracts and an application to point pollution control
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Contributors
Abstract
Two types of linear-quadratic principal-agent models will be considered: one in which a single agent has to perform several tasks and one in which several agents have to perform a certain task. For both models, we derive optimal contractual principal-agent relations. It turns out that under certain conditions (concerning risk-aversion and the correlation of the agents' outcome) the multiple-agent problem reduces to a multiple-task one-agent problem. Our results will be discussed within the framework of (multiple-) point pollution to which, in addition, also the results of the standard principal-agent model will be applied.
Details
Original language | English |
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Pages (from-to) | 57-78 |
Number of pages | 22 |
Journal | Annals of Operations Research |
Volume | 54 |
Issue number | 1 |
Publication status | Published - Dec 1994 |
Peer-reviewed | Yes |
Keywords
ASJC Scopus subject areas
Keywords
- environmental policy, firm organization, linear incentive schemes, multi-agents, Principal-agent, Subject classification: JEL D82, L22, Q28