The Theory Of The Social Contract Theory - amazonia.fiocruz.br

The Theory Of The Social Contract Theory - seems

In economics , contract theory studies how economic actors can and do construct contractual arrangements, generally in the presence of information asymmetry. Because of its connections with both agency and incentives , contract theory is often categorized within a field known as Law and economics. One prominent application of it is the design of optimal schemes of managerial compensation. In the field of economics, the first formal treatment of this topic was given by Kenneth Arrow in the s. In , Oliver Hart and Bengt R. A standard practice in the microeconomics of contract theory is to represent the behaviour of a decision maker under certain numerical utility structures, and then apply an optimization algorithm to identify optimal decisions. Such a procedure has been used in the contract theory framework to several typical situations, labeled moral hazard , adverse selection and signalling. The Theory Of The Social Contract Theory.

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The Enlightenment: Social Contract

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