Seminar series
Date
Thu, 18 Jun 2015
Time
16:00 -
17:00
Location
L1
Speaker
Prof. Stephane Villeneuve
Organisation
University of Toulouse
We revisit the optimal exit problem by adding a moral hazard problem where a firm owner contracts out with an agent to run a project. We analyse the optimal contracting problem between the owner and the agent in a Brownian framework, when the latter modifies the project cash-flows with an hidden action. The analysis leads to the resolution of a constrained optimal stopping problem that we solve explicitly.