Game Analysis of Preventing Moral Hazard and Contract Design
Xiujun Wu, Xianjia Wang · Yunchou yu guanli · 2005
Based on incomplete information dynamic game theory, this paper constructs a game model against moral hazard. Then it studies the perfect Bayesian Nash Equilibrium of the game, and gives the contract's expression. The model presented here is proved to overcome the problem of credibility in costly state verification(CSV) model and some related research in the theory of incentive.