SFB Adaptive Information Systems and Modelling in Economics and Management Science, WU Vienna University of Economics and Business
Abstract
We study an agency model, in which the principal has only incomplete information about the agent's preferences, in a dynamic setting. Through repeated interaction with the agent, the principal learns about the agent's preferences and can thus adjust the inventive system. In a dynamic computational model, we compare different learning strategies of the principal when facing different types of agents. The results indicate the importance of a correct specification of the agent's preferences. (author's abstract)Series: Working Papers SFB "Adaptive Information Systems and Modelling in Economics and Management Science
