The Principal-Agent Model When Agents Can Make Mistakes

Authors

Paul D. Thistle, University of Nevada, Las VegasFollow

Document Type

Preprint

Publication Date

11-2-2010

Abstract

This paper examines the principal-agent model when the agent can make a mistake by providing the" wrong" effort level. How the contract is affected depends on (1) whether mistakes can be positive or negative or are always negative and (2) whether the cost of effort depends on intended effort or actual effort.

Repository Citation

Thistle, P. D. (2010). The Principal-Agent Model When Agents Can Make Mistakes.