| Author(s): |
prof. RNDr. Jiří Hlaváček CSc., Hlaváček M.
|
| Type: |
Articles in refereed journals |
| Year: |
2006 |
| Number: |
3 |
| ISSN / ISBN: |
0572-3043 |
| Published in: |
Acta Oeconomica Pragensia 2006/3 |
| Publishing place: |
Praha |
| Keywords: |
moral hazard; adverse selection; probability of survival, Pareto distribution of probability |
| JEL codes: |
D82 |
| Suggested Citation: |
|
| Grants: |
IES Research Framework Institutional task (2005-2011) Integration of the Czech economy into European union and its development
|
| Abstract: |
The paper analyses problems within the asymmetric information models (principal agent models) where we replace standard assumption of maximisation of expected income by maximisation of probability of economic survival. This paper concentrates on two basic models – adverse selection model and moral hazard model. In both cases the effect of asymmetry of information gets weaker or even disappears. Contrary to standard approach the competitive Pareto effective equilibrium could exists in both models with pooled contract with full coverage of possible accident by the principal. |
