Each of managerial hedging and self-esteem concerns added to an otherwise standard agency model increases the equilibrium pay-performance sensitivity.
And regulatory agencies unwittingly encouraged this "plausible deniability" equilibrium.
"Heavy investment in additional affordable and homeless housing development is needed in order for even this less than perfect equilibrium to be achieved," the agency concluded.
If the agent's preference relation satisfies a strict monotonicity condition in common agency under the asymmetric information, the set of all equilibrium allocations in the menu game where menus of contracts are allowed coincides with the set of all equilibrium allocations in the single contract game where only single contracts are allowed.
And (ii) merger proposals different from the equilibrium ones are sufficient conditions for antitrust agencies to infer substantial efficiencies not considered that justify those proposals.
Many resource agencies build management plans around the concepts of dynamic equilibrium and stationarity, where past conditions and processes provide the context and guidance for contemporary management (Landres and others 1999; Milly and others 2008), but the most basic condition for equilibrium, that of a stable climate, is no longer met (IPCC 2007).
We show that this assumption changes the interpretation of the state: the state is characterized by a particular design of equilibrium strategies, not by the existence of enforcement agencies.
We model the agency theoretic perspective of risk-averse investors and financiers in a general equilibrium setting under the framework of rational expectations (i.e., symmetric information).
Now, more than four years after the flood, their lives have achieved only a fragile equilibrium, with many of them still turning to private agencies for help as their government aid expires.
At the same time, a lot of them are still not in their homes … that's unsettling, and it doesn't enable kids to find their equilibrium and move forward," said Pernille Ironside, chief of the Gaza office for the UN children's agency, Unicef.
