Hazard Moral Models with Three States of Nature

Daniela MARINESCU
Dumitru MIRON
Dumitru MARIN

Keywords

moral hazard, asymmetric information, informational rents, optimal contract

Abstract

The paper analyses a moral hazard model with three states of nature. The model is solved using as variables the informational rents and effort levels. Finally, we determine the features of the optimal contracts in asymmetric information.