Moral hazard with non-additive uncertainty: When are actions implementable? Articles uri icon

publication date

  • October 2018

start page

  • 110

end page

  • 114


  • 171

International Standard Serial Number (ISSN)

  • 0165-1765

Electronic International Standard Serial Number (EISSN)

  • 1873-7374


  • We provide sufficient conditions on the information structure for implementing actions in a moral hazard setting when Agent has non-probabilistic uncertainty. For a finite action space, under three well-known formulations of Agent's ambiguity attitude, contracts that partition the outcome space in two parts, and are piecewise constant on each part, are enough to implement an action. (C) 2018 Elsevier B.V. All rights reserved.


  • moral hazard; non-probabilistic uncertainty; ambiguity aversion; implementability