Spark Talk: “Disentangling Moral Hazard and Adverse Selection” by Henrique Castro-Pires (March 28th, 2025)
Online Event
28/03/2025, 10:30 am - TO 28/03/2025 - 11:30 am
Organizer: Spark / Social Science
Online Event
28/03/2025, 10:30 am - TO 28/03/2025 - 11:30 am
Organizer: Spark / Social Science
Many real-world principal-agent problems have both moral hazard and adverse selection. Existing tools largely analyze only one problem at a time. In this talk Henrique Castro-Pires proposes a new method — decoupling — to analyze both problems at once in several cases. He will provide simple tests to check when the method is valid, and a numerical algorithm to implement it.