Wednesday, October 28, 2015
Excel Homework Due 11/3 at 11 PM
This homework is on the simplest possible version of the principal-agent model. It is this model that produces pay for performance as a feature. It is important to understand this base model before we delve into various realistic ways of complicating the model. (Mostly we will talk about that but I might do some additional modeling in class after going over the basic model.) There is a video I'd like you to watch first. It should give you the background you need to do the homework.