Category: Ben Depoorter

When a principal hires an agent to perform a task, she puts herself at risk of sustaining losses resulting from the agent’s lack of effort. For example, consider a homeowner who hires a plumber to fix a pipe. The plumber can choose to put forth great effort toward a long-lasting fix or to put forth… Continue reading Ben Depoorter on the Moral-Hazard Effect of Liquidated Damages →