Reward Schemes
Seminar
Speaker
Dudu Lagziel
Date
04/04/2016 - 12:30 - 11:00Add To Calendar
2016-04-04 11:00:00
2016-04-04 12:30:00
Reward Schemes
An investor has some funds invested through investment firms. She also has additional funds to allocate among these investment firms according to the firms' performance. While the investor tries to maximise her total expected earnings, each investment firm tries to maximise the overall amount of funds it will be allocated to manage. A reward scheme is a rule that determines how funds are to be allocated among the investment firms based on their past performance. A reward scheme is optimal if it induces the (self-interested) firms to act in accordance with the interests of the investor. We show that an optimal reward scheme exists under quite general conditions.
Building 504, Room 011
אוניברסיטת בר-אילן - Department of Economics
Economics.Dept@mail.biu.ac.il
Asia/Jerusalem
public
Place
Building 504, Room 011
Affiliation
Tel Aviv University
Abstract
An investor has some funds invested through investment firms. She also has additional funds to allocate among these investment firms according to the firms' performance. While the investor tries to maximise her total expected earnings, each investment firm tries to maximise the overall amount of funds it will be allocated to manage. A reward scheme is a rule that determines how funds are to be allocated among the investment firms based on their past performance. A reward scheme is optimal if it induces the (self-interested) firms to act in accordance with the interests of the investor. We show that an optimal reward scheme exists under quite general conditions.
Attached file
Last Updated Date : 21/03/2016
