Contract theory plays a major role in modern economic modeling and has genuine application in real life, and many potential applications in connection with new technologies. The main concern is to design a management delegation contract between a Principal and an Agent which sets the basis of a satisfactory collaboration so as to put the best incentive for the Agent to fulfill the objective of the Principal. The problem is naturally formulated as a (Stackelberg) differential game. A general solution approach is provided by using recent representation results from backward stochastic differential equations.

Reception for the Speaker will follow at 5:00 PM in the Upper Atrium in East Hall on April 3, 2018

Sponsored by the Van Eenam Lectures Series