Contracting under uncertainty: A principal–agent model with ambiguity averse parties
Author
Abstract
Suggested Citation
DOI: 10.1016/j.geb.2018.02.008
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Halpern, Joseph Y. & Kets, Willemien, 2015. "Ambiguous language and common priors," Games and Economic Behavior, Elsevier, vol. 90(C), pages 171-180.
- Grant, Simon & Kline, J. Jude & Quiggin, John, 2012.
"Differential awareness, ambiguity, and incomplete contracts: A model of contractual disputes,"
Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 494-504.
- Grant, Simon & Kline, Jeff & Quiggin, John, 2012. "Differential awareness, ambiguity, and incomplete contracts: a model of contractual disputes?," Risk and Sustainable Management Group Working Papers 151200, University of Queensland, School of Economics.
- Oliver Board, 2008. "Object-Based Unawareness: Theory and Applications," Working Paper 378, Department of Economics, University of Pittsburgh, revised Mar 2009.
- Mohammed Abdellaoui & Aurelien Baillon & Laetitia Placido & Peter P. Wakker, 2011.
"The Rich Domain of Uncertainty: Source Functions and Their Experimental Implementation,"
American Economic Review, American Economic Association, vol. 101(2), pages 695-723, April.
- Mohammed Abdellaoui & Laetitia Placido & Aurélien Baillon & P.P. Wakker, 2011. "The Rich Domain of Uncertainty: Source Functions and Their Experimental Implementation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00609214, HAL.
- Mohammed Abdellaoui & Laetitia Placido & Aurélien Baillon & P.P. Wakker, 2011. "The Rich Domain of Uncertainty: Source Functions and Their Experimental Implementation," Post-Print hal-00609214, HAL.
- Kim-Sau Chung & Oliver Board, 2007. "Object-Based Unawareness," Working Papers 2007-2, University of Minnesota, Department of Economics, revised 24 Aug 2007.
- Bentley W. MacLeod, 2003.
"Optimal Contracting with Subjective Evaluation,"
American Economic Review, American Economic Association, vol. 93(1), pages 216-240, March.
- Bentley MacLeod, 2001. "Optimal Contracting with Subjective Evaluation," Theory workshop papers 357966000000000036, UCLA Department of Economics.
- Hogarth, Robin M & Kunreuther, Howard, 1989. "Risk, Ambiguity, and Insurance," Journal of Risk and Uncertainty, Springer, vol. 2(1), pages 5-35, April.
- Quiggin, John & Chambers, Robert G., 1998. "A state-contingent production approach to principal-agent problems with an application to point-source pollution control," Journal of Public Economics, Elsevier, vol. 70(3), pages 441-472, December.
- Chew, Soo Hong & Sagi, Jacob S., 2008. "Small worlds: Modeling attitudes toward sources of uncertainty," Journal of Economic Theory, Elsevier, vol. 139(1), pages 1-24, March.
- Chambers,Robert G. & Quiggin,John, 2000.
"Uncertainty, Production, Choice, and Agency,"
Cambridge Books,
Cambridge University Press, number 9780521622448, November.
- Chambers,Robert G. & Quiggin,John, 2000. "Uncertainty, Production, Choice, and Agency," Cambridge Books, Cambridge University Press, number 9780521785235, November.
- Grant, Simon & Kline, J. Jude & Quiggin, John, 2014.
"A matter of interpretation: Ambiguous contracts and liquidated damages,"
Games and Economic Behavior, Elsevier, vol. 85(C), pages 180-187.
- Grant, Simon & Kline, Jeff & Quiggin, John, 2011. "A Matter of Interpretation: Ambiguous Contracts and Liquidated Damages," Risk and Sustainable Management Group Working Papers 151198, University of Queensland, School of Economics.
- Grant, Simon & Kline, Jeff & Quiggin, John, 2012. "A Matter of Interpretation: Ambiguous Contracts and Liquidated Damages," Risk and Sustainable Management Group Working Papers 151204, University of Queensland, School of Economics.
- Chen Li, 2017. "Are the poor worse at dealing with ambiguity?," Journal of Risk and Uncertainty, Springer, vol. 54(3), pages 239-268, June.
- ,, 2013. "Scale-invariant uncertainty-averse preferences and source-dependent constant relative risk aversion," Theoretical Economics, Econometric Society, vol. 8(1), January.
- Daniel Ellsberg, 1961. "Risk, Ambiguity, and the Savage Axioms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 75(4), pages 643-669.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Guichen Gao & Xinxin Han & Li Ning & Hing-Fung Ting & Yong Zhang, 2022. "Principal–agent problem under the linear contract," Journal of Combinatorial Optimization, Springer, vol. 44(4), pages 2286-2301, November.
- Grant Simon & Guerdjikova Ani & Quiggin John, 2021.
"Ambiguity and Awareness: A Coherent Multiple Priors Model,"
The B.E. Journal of Theoretical Economics, De Gruyter, vol. 21(2), pages 571-612, June.
- Simon Grant & Ani Guerdjikova & John Quiggin, 2020. "Ambiguity and awareness: a coherent multiple priors model. ," Working Papers hal-02550347, HAL.
- Simon Grant & Ani Guerdjikova & John Quiggin, 2021. "Ambiguity and Awareness: A Coherent Multiple Priors Model," Post-Print hal-03726359, HAL.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Cédric Gutierrez & Emmanuel Kemel, 2021. "Measuring natural source dependence," Working Papers hal-03330409, HAL.
- Ronald Klingebiel & Feibai Zhu, 2023. "Ambiguity aversion and the degree of ambiguity," Journal of Risk and Uncertainty, Springer, vol. 67(3), pages 299-324, December.
- Zhihua Li & Julia Müller & Peter P. Wakker & Tong V. Wang, 2018.
"The Rich Domain of Ambiguity Explored,"
Management Science, INFORMS, vol. 64(7), pages 3227-3240, July.
- Müller, Julia & Li, Zhihua & Wakker, Peter P. & Wang, Tong V., 2016. "The Rich Domain of Ambiguity Explored," VfS Annual Conference 2016 (Augsburg): Demographic Change 145734, Verein für Socialpolitik / German Economic Association.
- Grant, Simon & Kline, J. Jude & Quiggin, John, 2014.
"A matter of interpretation: Ambiguous contracts and liquidated damages,"
Games and Economic Behavior, Elsevier, vol. 85(C), pages 180-187.
- Grant, Simon & Kline, Jeff & Quiggin, John, 2011. "A Matter of Interpretation: Ambiguous Contracts and Liquidated Damages," Risk and Sustainable Management Group Working Papers 151198, University of Queensland, School of Economics.
- Grant, Simon & Kline, Jeff & Quiggin, John, 2012. "A Matter of Interpretation: Ambiguous Contracts and Liquidated Damages," Risk and Sustainable Management Group Working Papers 151204, University of Queensland, School of Economics.
- Chen Li, 2017. "Are the poor worse at dealing with ambiguity?," Journal of Risk and Uncertainty, Springer, vol. 54(3), pages 239-268, June.
- Li, Chen & Turmunkh, Uyanga & Wakker, Peter P., 2020. "Social and strategic ambiguity versus betrayal aversion," Games and Economic Behavior, Elsevier, vol. 123(C), pages 272-287.
- Claudio A. Bonilla & Pablo A. Gutiérrez Cubillos, 2021. "The effects of ambiguity on entrepreneurship," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 30(1), pages 63-80, February.
- Junyi Chai & Zhiquan Weng & Wenbin Liu, 2021. "Behavioral Decision Making in Normative and Descriptive Views: A Critical Review of Literature," JRFM, MDPI, vol. 14(10), pages 1-14, October.
- Mohammed Abdellaoui & Han Bleichrodt & Cédric Gutierrez, 2023. "Unpacking Overconfident Behavior When Betting on Oneself," Post-Print hal-04383402, HAL.
- Gul, Faruk & Pesendorfer, Wolfgang, 2015. "Hurwicz expected utility and subjective sources," Journal of Economic Theory, Elsevier, vol. 159(PA), pages 465-488.
- Milos Borozan & Loreta Cannito & Barbara Luppi, 2022. "A tale of two ambiguities: A conceptual overview of findings from economics and psychology," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 6(S1), pages 11-21, July.
- Aurélien Baillon & Zhenxing Huang & Asli Selim & Peter P. Wakker, 2018. "Measuring Ambiguity Attitudes for All (Natural) Events," Econometrica, Econometric Society, vol. 86(5), pages 1839-1858, September.
- Ilke Aydogan & Loic Berger & Valentina Bosetti & Ning Liu, 2018.
"Three layers of uncertainty: an experiment,"
Working Papers
623, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Ilke Aydogan & Lo?c Berger & Valentina Bosetti & Ning Liu, 2018. "Three Layers of Uncertainty: an Experiment," Working Papers 2018.24, Fondazione Eni Enrico Mattei.
- Aydogan, Ilke & Berger, Loϊc & Bosetti, Valentina & Liu, Ning, 2018. "Three Layers of Uncertainty: an Experiment," ETA: Economic Theory and Applications 274852, Fondazione Eni Enrico Mattei (FEEM).
- Fast, Victoria & Sachs, Nikolai & Schnurr, Daniel, 2021. "Privacy Decision-Making in Digital Markets: Eliciting Individuals' Preferences for Transparency," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238020, International Telecommunications Society (ITS).
- Ilke Aydogan & Loïc Berger & Valentina Bosetti & Ning Liu, 2023.
"Three Layers of Uncertainty,"
Journal of the European Economic Association, European Economic Association, vol. 21(5), pages 2209-2236.
- Ilke Aydogan & Loïc Berger & Valentina Bosetti & Ning Liu, 2022. "Three layers of uncertainty," Working Papers hal-03031751, HAL.
- Ilke Aydogan & Loïc Berger & Valentina Bosetti & Ning Liu, 2023. "Three Layers of Uncertainty," Post-Print hal-04370968, HAL.
- Ilke AYDOGAN & Loïc BERGER & Valentina BOSETTI & Ning LIU, 2022. "Three layers of uncertainty," Working Papers 2022-iRisk-01, IESEG School of Management.
- Frick, Mira & Iijima, Ryota & Le Yaouanq, Yves, 2019.
"Boolean Representations of Preferences under Ambiguity,"
Rationality and Competition Discussion Paper Series
173, CRC TRR 190 Rationality and Competition.
- Mira Frick & Ryota Iijima & Yves Le Yaouanq, 2019. "Boolean Representations of Preferences under Ambiguity," Cowles Foundation Discussion Papers 2180R, Cowles Foundation for Research in Economics, Yale University, revised Jul 2019.
- Xiangyu Qu, 2015.
"A belief-based definition of ambiguity aversion,"
Theory and Decision, Springer, vol. 79(1), pages 15-30, July.
- Xiangyu Qu, 2015. "A belief-based definition of ambiguity aversion," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01437539, HAL.
- Xiangyu Qu, 2015. "A belief-based definition of ambiguity aversion," Post-Print hal-01437539, HAL.
- Li, Jiangyan & Fairley, Kim & Fenneman, Achiel, 2024. "Does it matter how we produce ambiguity in experiments?," MPRA Paper 122336, University Library of Munich, Germany.
- Aurélien Baillon & Han Bleichrodt & Umut Keskin & Olivier l’Haridon & Chen Li, 2018.
"The Effect of Learning on Ambiguity Attitudes,"
Management Science, INFORMS, vol. 64(5), pages 2181-2198, May.
- Aurélien Baillon & Han Bleichrodt & Umut Keskin & Olivier L’haridon & Chen Li, 2018. "The Effect of Learning on Ambiguity Attitudes," Post-Print halshs-01525391, HAL.
- Keyu Wu & Ernst Fehr & Sean Hofland & Martin Schonger, 2024.
"On the Psychological Foundations of Ambiguity and Compound Risk Aversion,"
CESifo Working Paper Series
11150, CESifo.
- Wu, Keyu & Fehr, Ernst & Hofland, Sean & Schonger, Martin, 2024. "On the Psychological Foundations of Ambiguity and Compound Risk Aversion," IZA Discussion Papers 17032, Institute of Labor Economics (IZA).
- Keyu Wu & Ernst Fehr & Sean Hofland & Martin Schonger, 2024. "On the psychological foundations of ambiguity and compound risk aversion," ECON - Working Papers 444, Department of Economics - University of Zurich.
More about this item
Keywords
Linguistic ambiguity; Principal–agent problem; State-contingent versus output contingent contracts;All these keywords.
JEL classification:
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:109:y:2018:i:c:p:582-597. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622836 .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.