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Full Description
This book proposes a revised theory of agency, drawing on ideas from behavioural economics and built on more robust assumptions about human behaviour than the standard principal-agent model. The book proposes new design principles for executive pay, but also explains the difficulties in changing current executive pay practices.
Contents
1. Introduction 2. Long-term incentive plans 3. Behavioural agency theory 4. Risk, uncertainty and time discounting 5. Intrinsic motivation and the crowding-out conjecture 6. Fairness as a precondition for profit-seeking 7. New design principles for executive pay



