To Trust or to Monitor: A Dynamic Analysis

• المؤلف الرئيسي: HUANG, Fali
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2007
• الموضوعات: Monitoring; Trustworthiness; Trust; Screening; Economic Governance; Behavioral Economics; Business Law, Public Responsibility, and Ethics
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/soe_research/1029; https://ink.library.smu.edu.sg/context/soe_research/article/2028/viewcontent/TrustGovernance20070924ET.pdf

In a principal-agent framework, principals can mitigate moral hazard problems not only through extrinsic incentives such as monitoring, but also through agents’ intrinsic trustworthiness. Their relative usage, however, changes over time and varies across societies. This paper attempts to explain thi...