Optimal Monitoring Schedule in Dynamic Contracts

Published Online:https://doi.org/10.1287/opre.2019.1968

References

  • Babich V, Tang C (2012) Managing opportunistic supplier product adulteration: Deferred payments, inspection and combined mechanisms. Manufacturing Service Oper. Management 14(2):301–314.LinkGoogle Scholar
  • Biais B, Mariotti T, Plantin G, Rochet J-C (2007) Dynamic security design: Convergence to continuous time and asset pricing implications. Rev. Econom. Stud. 74(2):345–390.CrossrefGoogle Scholar
  • Biais B, Mariotti T, Rochet J-C, Villeneuve S (2010) Large risks, limited liability, and dynamic moral hazard. Econometrica 78(1):73–118.CrossrefGoogle Scholar
  • Brémaud P (1981) Point Processes and Queues (Springer-Verlag, Heidelberg, Berlin).CrossrefGoogle Scholar
  • Cohen S, Elliott R (2015) Stochastic Calculus and Applications, 2nd ed. (Birkhäuser/Springer, New York).CrossrefGoogle Scholar
  • Davis M (1984) Piecewise-deterministic Markov processes: A general class of non-diffusion stochastic models. J. Royal Statist. Soc. B 46(3):353–388.Google Scholar
  • DeMarzo P, Sannikov Y (2006) Optimal security design and dynamic capital structure in a continuous-time agency model. J. Finance 61(6):2681–2724.CrossrefGoogle Scholar
  • Dixit A (1994) The Art of Smooth Pasting (Harwood Academic Publishers, Chur, Switzerland).Google Scholar
  • Dixit A, Pindyck R (1994) Investment Under Uncertainty (Princeton University Press, Princeton, NJ).CrossrefGoogle Scholar
  • Dye R (1986) Optimal monitoring policies in agencies. RAND J. Econom. 17(3):339–350.CrossrefGoogle Scholar
  • Fu S (2017) Dynamic capital allocation and managerial compensation. Working paper, Shanghai University of Finance and Economics, Shanghai, China.Google Scholar
  • Green B, Taylor C (2016) Breakthroughs, deadlines, and self-reported progress: Contracting for multistage projects. Amer. Econom. Rev. 106(12):3660–3699.CrossrefGoogle Scholar
  • Hartman P (1982) Ordinary Differential Equations (Birkhäuser, Boston).Google Scholar
  • Hidir S (2017) Contracting for experimentation and the value of bad news. Working paper, University of Warwick, Coventry, UK.Google Scholar
  • Kim S-H (2015) Time to come clean? Disclosure and inspection policies for green production. Oper. Res. 63(1):1–20.LinkGoogle Scholar
  • Li H, Zhang H, Fine C (2012) Dynamic business share allocation in a supply chain with competing suppliers. Oper. Res. 61(2):280–297.LinkGoogle Scholar
  • Mason R, Välimäki J (2015) Getting it done: Dynamic incentives to complete a project. J. Eur. Econom. Assoc. 13(1):62–97.CrossrefGoogle Scholar
  • Myerson R (1981) Optimal auction design. Math. Oper. Res. 6(1):58–73.LinkGoogle Scholar
  • Myerson R (2015) Moral hazard in high office and the dynamics of aristocracy. Econometrica 83(6):2083–2126.CrossrefGoogle Scholar
  • Piskorski T, Westerfield M (2016) Optimal dynamic contracts with moral hazard and costly monitoring. J. Econom. Theory 166:242–281.CrossrefGoogle Scholar
  • Plambeck E, Taylor T (2016) Supplier evasion of a buyer’s audit: Implications for motivating supplier social and environmental responsibility. Manufacturing Service Oper. Management 18(2):184–197.LinkGoogle Scholar
  • Plambeck E, Taylor T (2019) Testing by competitors in enforcement of product standards. Management Sci. 65(4):1735–1751Google Scholar
  • Plambeck E, Zenios S (2003) Incentive efficient control of a make-to-stock production system. Oper. Res. 51(3):371–386.LinkGoogle Scholar
  • Rui H, Lai G (2015) Sourcing with deferred payment and inspection under supplier product adulteration risk. Production Oper. Management 24(6):934–946.CrossrefGoogle Scholar
  • Sannikov Y (2008) A continuous-time version of the principal-agent problem. Rev. Econom. Stud. 75(3):957–984.CrossrefGoogle Scholar
  • Shan Y (2017) Optimal contracts for research agents. RAND J. Econom. 48(1):94–124.CrossrefGoogle Scholar
  • Spear S, Srivastava S (1987) On repeated moral hazard with discounting. Rev. Econom. Stud. 54(4):599–617.CrossrefGoogle Scholar
  • Sun P, Tian F (2018) Optimal contract to induce continued effort. Management Sci. 64(9):4193–4217LinkGoogle Scholar
  • Townsend RM (1979) Optimal contracts and competitive markets with costly state verification. J. Econom. Theory 21(2):265–293.CrossrefGoogle Scholar
  • Varas F (2018) Managerial short-termism, turnover policy, and the dynamics of incentives. Rev. Financial Stud. 31(9):3409–3451CrossrefGoogle Scholar
  • Varas F, Marinovic I, Skrzypacz A (2017) Random inspections and periodic reviews: Optimal dynamic monitoring. Stanford University Graduate School of Business Research Paper No. 17-9, Stanford University, Stanford, CA.Google Scholar
  • Wang S, Sun P, de Véricourt F (2016) Inducing environmental disclosures: A dynamic mechanism design approach. Oper. Res. 64(2):371–389.LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.