To Trust or to Monitor: A Dynamic Analysis

• 主要作者: HUANG, Fali
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2007
• 主題: Monitoring; Trustworthiness; Trust; Screening; Economic Governance; Behavioral Economics; Business Law, Public Responsibility, and Ethics
• 在線閱讀: https://ink.library.smu.edu.sg/soe_research/1029; https://ink.library.smu.edu.sg/context/soe_research/article/2028/viewcontent/TrustGovernance20070924ET.pdf
• 機構: Singapore Management University

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...