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econ.TH2026
Principal-agent problems with adverse selection: A stochastic target problem formulation
Guillermo Alonso Alvarez, Ibrahim Ekren, Liwei Huang
We study a principal-agent problem with adverse selection, where the principal does not know the agent's true cost but must design a contract to optimize a specific criterion. Unli…
econ.TH2025
Contracting with discretionary bonuses
Guillermo Alonso Alvarez, Ibrahim Ekren, Liwei Huang
We study a continuous time contracting model in which a principal hires a risk averse agent to manage a project over a finite horizon and provides sequential payments whose timing…