The general solution to the principal-agent problem with asymmetrical information under uncertainty and risk (Q5954351)

The authors consider two classes of principal-agent problems in which the agent has exact knowledge of the conflict parameters while the principal knows either the set of their possible values (uncertainty conditions) or additionally the probability distribution on this set (risk conditions). For these two classes of problems, general solutions are found; i.e., an optimal strategy for the principal is constructed and its highest possible payoff is calculated.