caa a22 4500 475739531 CHVBK 20180406123456.0 cr unu---uuuuu 170329e20000301xx s 000 0 eng 10.1007/s100580050046 doi (NATIONALLICENCE)springer-10.1007/s100580050046 On the generalized principal-agent problem: Decomposition and existence results [Elektronische Daten] [Peter S. Faynzilberg, Praveen Kumar] Abstract.: This paper addresses the class of generalized agency problems: situations in which adverse selection and moral hazard are jointly present. We present a decomposition of the principal's optimization problem under the first-order approach that sheds light on the interactions between the two types of private information, and also significantly improves tractability. We use the decomposition to (1) provide examples of closed form solutions of the optimal contract, and (2) analyze the existence of optimal contracts. We also show that the first-order approach is valid in generalized agency problems if the production technology satisfies the linear distribution function condition (LDFC) in actions and types. For more general production technologies the Mirrlees-Rogerson sufficient conditions need to be extended to include restrictions on the form of the optimal contract. Springer-Verlag Berlin Heidelberg, 2000 JEL classification:D82 nationallicence Key words:Generalized agency, moral hazard, adverse selection, separability, existence nationallicence Faynzilberg Peter S. MEDS Department, J.L. Kellogg Graduate School of Management, Northwestern University, Evanston, IL 60208-2009, USA (e-mail: PeterSFay@aol.com), US aut Kumar Praveen College of Business Administration, University of Houston, Houston, TX 77204-6282, USA (e-mail: pkumar@uh.edu), US aut https://doi.org/10.1007/s100580050046 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s100580050046 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Faynzilberg Peter S. MEDS Department, J.L. Kellogg Graduate School of Management, Northwestern University, Evanston, IL 60208-2009, USA (e-mail: PeterSFay@aol.com), US aut NATIONALLICENCE 700 1- Kumar Praveen College of Business Administration, University of Houston, Houston, TX 77204-6282, USA (e-mail: pkumar@uh.edu), US aut Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer