INVESTIGADORES
WEINSCHELBAUM Federico
congresos y reuniones científicas
Título:
The threat of insurance A note on the robustness of principal-agent models
Autor/es:
MARIANO TOMMASI; FEDERICO WEINSCHELBAUM
Lugar:
Cordoba
Reunión:
Conferencia; XXXV Reunión Anual de la Asociación Argentina de Economía Política; 2000
Institución organizadora:
Asociación Argentina de Economía Política
Resumen:
The traditional principal-agent model assumes that the principal o¤ers an exclusive contract to the agent. This paper studies the robustness of the traditional results to the potential entry of risk-neutral players, not interested in the agents e¤ort, that o¤er contracts to the agent. We
nd that the standard equilibrium is not robust to the presence of these players. Although these new players do not get any utility, the total welfare of the economy decreaseswith free entry (and so does the surplus of the principal, while the agent remains in his reservation level of utility).
