Optimal self-enforcement and termination
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DOI: 10.1016/j.jedc.2018.12.010
Abstract: We study a dynamic principal-agent relationship in which the agent receives a stochastic outside opportunity/offer each period and he cannot commit to not leaving the ongoing relationship.Termination, while costly, allows the principal to go to… read more here.
Keywords: agent outside; agent; commitment constraint; termination ... See more keywords