The Incentive and monitor on the Principal-Agent Model of Moral Hazard
Yang Kai-long · 2004
This essay firstly introduces the theory of in centive with principal-agent problem,then studies on the principal-agent mode l of moral hazard and considers that the observation of the state of nature has the substitutive quality with monitoring the agent's action.At the end of this paper,we conclude some meaningful results through expanding the model and Bayes ian analysis of the information asymmetry problem.