TEACHING TOOLS - A SIMPLE PRINCIPAL-AGENT EXPERIMENT FOR THE CLASSROOM

Authors
ORTMANN A COLANDER D
Citation
A. Ortmann et D. Colander, TEACHING TOOLS - A SIMPLE PRINCIPAL-AGENT EXPERIMENT FOR THE CLASSROOM, Economic inquiry, 35(2), 1997, pp. 443-450
Citations number
38
Categorie Soggetti
Economics
Journal title
Economic inquiry → ACNP
ISSN journal
00952583
Volume
35
Issue
2
Year of publication
1997
Pages
443 - 450
Database
ISI
SICI code
0095-2583(1997)35:2<443:TT-ASP>2.0.ZU;2-W
Abstract
In this note we describe a simple, flexible and instructive moral haza rd experiment. It can be used in a variety of classes, including princ iples classes, to illustrate the basic incentive conflicts in principa l-agent interactions, the importance of information, and the power of reputational enforcement.