Moral Risk and Contracts: Certain Experimental Evidence

Revista de Economia Institucional, Vol. 6, No. 10, 2004

24 Pages Posted: 28 Jul 2005

See all articles by Julián Arévalo

Julián Arévalo

Universidad Externado de Colombia - Department of Economics

Jair N. Ojeda-Joya

Government of the Republic of Colombia

Abstract

This paper shows one type of asymmetric information problems, their theoretical implications, the design of contracts that mitigate them, as well as some experimental evidence. Furthermore, by extrapolating the results, the paper tries to illustrate certain macroeconomic implications obtained under a controlled environment.

Note: Downloadable document is in Spanish.

Keywords: Moral risk, contracts, experimental evidence, asymmetric information

JEL Classification: B41, C90, D89

Suggested Citation

Arévalo, Julián and Ojeda, Jair, Moral Risk and Contracts: Certain Experimental Evidence. Revista de Economia Institucional, Vol. 6, No. 10, 2004, Available at SSRN: https://ssrn.com/abstract=761046

Julián Arévalo (Contact Author)

Universidad Externado de Colombia - Department of Economics ( email )

Bogota D.C
Colombia

Jair Ojeda

Government of the Republic of Colombia ( email )

Carrera 7 #14-78
Cr 7 No.14-78 Piso 11
3551 de Bogotá
Colombia