This paper discusses the optimal contract as an effective tool for resolution of conflicting objectives.
Written in 2002; 1,900 words; 4 sources; $ 71.95
Paper Summary:
This paper explains the idea that an organization is a consortium of multiple stakeholders who operate with conflicting objectives.The author studies the role of optimal contract as a possible effective tool that ensures the smooth functioning of contrasting values in a firm. This paper uses the principal-agent framework, which helps in understanding the values of both sides and shows how one side helps the other in achieving their end objectives by granting them their mean objectives through optimal contract system.
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