Jangwoo Lee
Institution
CUHK
PhD Year
2021
matizoma@gmail.com
FTG Membership
Member
Website
https://sites.google.com/view/jangwoolee/home
Areas of Expertise
Corporate Finance
Financial Contracting
Information Frictions In Financial Markets
Featured Work
Exploitation Payoffs and Incentives for Exploration
Aug 4, 2025
We study a dynamic moral hazard problem involving initial exploration followed by exploitation, merging experimentation with dynamic corporate finance. We show how the methods and conclusions of the experimentation literature change when considering the exploitation phase’s non-monotonic payoff structure that arises naturally in the presence of moral hazard and limited liability. In particular, the agent’s incentive constraints may be slack during the exploration phase, which...
