{"product_id":"the-theory-of-incentives-the-principalagent-model","title":"The Theory of Incentives: The Principal-Agent Model","description":"\u003cp\u003eEconomics has much to do with incentives--not least  incentives to work hard  to produce quality products  to study  to invest  and to save. Although Adam Smith amply confirmed this more than two hundred years ago in his analysis of sharecropping contracts  only in recent decades has a theory begun to emerge to place the topic at the heart of economic thinking. In this book  Jean-Jacques Laffont and David Martimort present the most thorough yet accessible introduction to incentives theory to date. Central to this theory is a simple question as pivotal to modern-day management as it is to economics research: What makes people act in a particular way in an economic or business situation? In seeking an answer  the authors provide the methodological tools to design institutions that can ensure good incentives for economic agents.  This book focuses on the principal-agent model  the \"simple\" situation where a principal  or company  delegates a task to a single agent through a contract--the essence of management and contract theory. How does the owner or manager of a firm align the objectives of its various members to maximize profits? Following a brief historical overview showing how the problem of incentives has come to the fore in the past two centuries  the authors devote the bulk of their work to exploring principal-agent models and various extensions thereof in light of three types of information problems: adverse selection  moral hazard  and non-verifiability. Offering an unprecedented look at a subject vital to industrial organization  labor economics  and behavioral economics  this book is set to become the definitive resource for students  researchers  and others who might find themselves pondering what contracts  and the incentives they embody  are really all about.\u003c\/p\u003e","brand":"My Store","offers":[{"title":"Default Title","offer_id":44964297801781,"sku":"ByrdShop_0691091846","price":61.27,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0627\/8139\/0901\/files\/9780691091846.jpg?v=1770456015","url":"https:\/\/atxbooks.com\/products\/the-theory-of-incentives-the-principalagent-model","provider":"ATX Books","version":"1.0","type":"link"}