References (23)


Citations (1)



Test Contract

Anqi Li

Washington University in Saint Louis

September 1, 2014

In dynamic agency models with imperfect public monitoring over finite T instances where signals can depend arbitrarily on past actions and exhibit moderate serial correlation, one can implement near-efficient outcomes when T is large if there exists a performance test statistic that has sufficiently concentrated measures and conveys enough information about the agent's true profit contribution asymptotically. Conversely, in a large class of agency models with frequent actions, asymptotic near-efficiency obtains only if this condition is satisfied. To show these results, I construct test contracts which attain robust performances for each T even if details of the signal process are not exactly known to the contract designer.

Number of Pages in PDF File: 41

Keywords: dynamic agency; robust incentives

JEL Classification: D86

working papers series

Download This Paper

Date posted: July 6, 2013  

Suggested Citation

Li, Anqi, Test Contract (September 1, 2014). Available at SSRN: http://ssrn.com/abstract=2290373 or http://dx.doi.org/10.2139/ssrn.2290373

Contact Information

Anqi Li (Contact Author)
Washington University in Saint Louis ( email )
Department of Economics
One Brookings Drive
St. Louis, MO 63130
United States
Feedback to SSRN

Paper statistics
Abstract Views: 378
Downloads: 57

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.250 seconds