Optimal Incentive Contracts for Dual Asymmetric Information

摘要

The principal usually neither knows the behavior nor the ability of agents, which is defined as dual asymmetric information. So the incentive contracts the principal designs should meet both the moral hazard and the adverse selection incentive compatibility besides the participation constraint. This paper tries to get such a linear contract. This paper explores the optimal incentive contracts for pure moral hazard and dual asymmetric information of incentive.