Alejandro Rivera
Institution
UT-Dallas
PhD Year
2015
alejorivera1@gmail.com
FTG Membership
Member
Website
https://sites.google.com/site/alejandroriveramesias/
Featured Work
Sep 27, 2023
Contracting with a Present-Biased Agent: Sannikov meets Laibson
This paper develops a methodology to solve dynamic principal-agent problems in which the agent features present-biased time preferences and naive beliefs. There are three insights. First, the problem has a recursive representation using the agent's perceived continuation value as a state variable (i.e., the remaining value the agent (wrongly) anticipates getting from the contract). Second, incentive compatibility corresponds to a volatility constraint on the agent's...
