A dynamic principal-agent problem as a feedback Stackelberg differential game

Abstract

We consider situations in which a principal tries to induce an agent to spend effort on accumulating a state variable that affects the well-being of both parties. The only incentive mechanism that the principal can use is a state-dependent transfer of her own utility to the agent. Formally, the model is a Stackelberg differential game in which the players… (More)
DOI: 10.1007/s10100-010-0172-5

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Cite this paper

@article{Long2010ADP, title={A dynamic principal-agent problem as a feedback Stackelberg differential game}, author={Ngo Van Long and Gerhard Sorger}, journal={CEJOR}, year={2010}, volume={18}, pages={491-509} }