JOINT EVENT
THE LAZARIDIS SCHOOL OF BUSINESS AND ECONOMICS
THE MS2DISCOVERY INTERDISCIPLINARY RESEARCH INSTITUTE
WATERLOO | CANADA
The Demand and Supply for Favours in Dynamic Relationships
Jean Guillaume Forand | University of Waterloo
We characterise the optimal demand and supply for favours in a dynamic principal-agent model of joint production, in which heterogenous project opportunities are stochastically generated and publicly observed upon arrival. Our results characterise the optimal dynamic contract, and we establish that the principal's supply of favours (the production of projects that bene_t the agent but not the principal) is backloaded, while the principal's demand for favours (the production of projects that bene_t the principal but not the agent) is frontloaded. Furthermore, we provide an exact construction of the optimal contract when project opportunities follow a Markov process.
Jean Guillaume Forand received his Ph.D. in Economics from the University of Toronto. He is currently a faculty member at the Department of Economics, University of Waterloo. Earlier in his career he held visiting positions at the Wallis Institute for Political Economy at the University of Rochester, as well as at the Johns Hopkins University‚Äč. He is part of theMiacro Theory Reading Group which focuses on a range of topics, including game theory. Dr. Forand's main research interests are in microeconomic theory, as well as in political economy.
This event is organized jointly by the MS2Discovery Institute and the Laurier Department of Economics at the Lazaridis School of Business & Economics.

Contact at the MS2Discovery Research Institute: Maria Gallego (Host of the speaker, Tecton 8: Econometrics and Quantitative Approaches to Economics, Business and Political Science
Refreshments will be provided
November 18, 2016
11:30am | Location: LH2064
The MS2Discovery Seminar Series: www.ms2discovery.wlu.ca/seminar
Wilfrid Laurier University, 75 University Avenue West, Waterloo
This event is hosted by the MS2Discovery Interdisciplinary Research Institute and the Lazaridis School of Business and Economics
http://www.ms2discovery.wlu.ca | Waterloo