A generalization of a classical model in contract theory: The agent behavior

TL;DR

This paper introduces a generalized contract theory model that relaxes classical assumptions, broadening the scope of agent behaviors and analyzing effort and outcome probabilities.

Contribution

It extends classical models by incorporating diverse agent motivations and redefining risk perception, enabling more comprehensive analysis of agent behavior.

Findings

Broader range of agent behaviors modeled

Redefinition of risk perception in contract theory

Analysis of effort-outcome probability relations

Abstract

We present a first approximation of agent behaviour in a generalized model in contract theory. This model relaxes some of the the assumptions of one of the classical models allowing to include a broader range of agents. We introduce the motivation for the agent and reinterpret the classical definition of risk perception. Besides, we analyze different scenarios for the relation between the effort exerted by the agent and the probability that he gets an especfic result.