Ways of creating contracts in Agent-Principal model and propensity to risk Cover Image

Sposoby tworzenia kontraktu w modelu Agent-Pryncypał a skłonność do ryzyka
Ways of creating contracts in Agent-Principal model and propensity to risk

Author(s): Małgorzata Guzowska, Mariusz Doszyń
Subject(s): Economy
Published by: Wydawnictwo Naukowe Uniwersytetu Szczecińskiego
Keywords: human propensity; propensity to risk; utility function; Agent–Principal model

Summary/Abstract: In the article propensity to risk was defi ned. Dependencies between agent's utility function and propensity to risk were emphasized. For given utility function (with assigned rate of propensity to risk) optimization model that enables determination of impact of propensity to risk on contract's form were proposed. In conclusions problems connected with possibilities of constructing contracts (setting wages) in Agent-Principal model with respect to propensity to risk were discussed.

  • Issue Year: 2014
  • Issue No: 36/1
  • Page Range: 53-62
  • Page Count: 10
  • Language: Polish