Can CDFC and MLRP Conditions Be Both Satisfied for a Given Distribution?

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Title:Can CDFC and MLRP Conditions Be Both Satisfied for a Given Distribution?
Creators:
Loisel, Patrice
Journal or Publication Title:
Czech Economic Review, 7, 3, pp. 135-146
Uncontrolled Keywords:Monotone Likelihood Ratio Property, Convex Distribution Function Condition, incentive contract, first-order approach, moral hazard

Abstract

In principal-agent problem, the first-order approach is frequently used. To insure the validity of the approach the Monotone Likelihood Ratio Property and the Convexity of the Distribution Function Condition are requested. While the former property is satisfied by most of the distributions, this is not the case for the second property. We present two families of distributions for which the properties are satisfied. The first family includes as special cases the distributions that were previously introduced by various authors. The second family includes new distributions.

Official URL: http://www.ceeol.com/aspx/issuedetails.aspx?issueid=EBDBB5D1-5DB5-47E5-BEE4-061EAFA3587D&articleid=DEE5980A-83DA-403B-A0C1-94F0D3685FDA

Title:Can CDFC and MLRP Conditions Be Both Satisfied for a Given Distribution?
Creators:
Loisel, Patrice
Uncontrolled Keywords:Monotone Likelihood Ratio Property, Convex Distribution Function Condition, incentive contract, first-order approach, moral hazard
Subjects:H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
H Social Sciences > HF Commerce
Divisions:Section of external journals > AUCO Czech Economic Review
Journal or Publication Title:Czech Economic Review
Volume:7
Number:3
Page Range:pp. 135-146
ISSN:1802-4696
Publisher:Charles University
Related URLs:
URLURL Type
http://auco.cuni.czPublisher
http://avi.lib.cas.cz/node/183Publisher
ID Code:7937
Item Type:Article
Deposited On:20 Nov 2013 15:56
Last Modified:20 Nov 2013 14:56

Citation

Loisel, Patrice (2013) Can CDFC and MLRP Conditions Be Both Satisfied for a Given Distribution? Czech Economic Review, 7 (3). pp. 135-146. ISSN 1802-4696

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