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Contracts permeate our lives: just think of the contract with your employer or your insurance provider or your聽bank to get聽a loan even your marriage is a contract. But why are they designed the way they are Economists Oliver Hart and Bengt Holmstr枚m developed a framework that allows us to understand and design better contracts. On Monday, the two U.S.-based economists were awarded a Nobel Prize in economic sciences for their contributions in contract theory. Key to contract theory is incentive. For example, a contract must incentivize employees to work in the interest of their employer via payment and other forms of compensation. Key to contract theory is incentive. For example, a contract must incentivize employees to work in the interest of their employer via payment and other forms of compensation.Holmstr枚ms contributions focused on the nee stanley cup d to balance this incentive with risk. stanley cup And since an employer is often able to shoulder this risk better than an employee, contract聽theory suggests that risk should be shared.As the Nobel committee explained, In industries with high risk, payment should thus be relatively more biased towards a fixed salary to offer employees stability while in more stable environments it should be more biased towards a performance measure to give employees incentive to work harder and not become complacent.This balance between risk a stanley cup nd incentives also applies to insurance contracts. We would love i Ndst Politics This Morning: What to Expect from the RNC
Northern California is being hit with a massive storm that pounding the state with rain, snow and strong winds. The National Weather Service considers it the strongest storm the state has seen in five years and expects it to dump as much as 8 inches of rain over a 24-hour period. Since the storm began last night, more than 90,000 San Franciscans have already lost power. Travel by train, ferry and air has been delayed across the San Francisco Bay Area. The power outage caused local public transportation systems, Muni and BART, to close two area stations, including one due to flooding. The FAA has issued a weather update saying that flights at San Francisco International Airport are arriving late by an average of three hours and 40 minutes.In a very rare occurrence, public and private schools have closed in San Francisco, Oakland and nearly all of Marin County.Flash flood warnings have been issued all over the Bay Area, in Sonoma, San Franci adidas originals sco, Santa Cruz, Napa, Marin, Contra Costa, Alameda, San Mateo, and Santa Clara counties. Many are worried about mud and debris slides adidas originals since this storm arrives right on the stanley cup heels of a year of intense drought and wildfires. Given the long-term drought and short鈥搕erm saturated ground, many trees will lose the battle to the wind on Thursday, said news station KPIX 5 meteorologist Paul Deanno. Over the past three years California has been in the midst of a record-shattering drought that caused Gov. Jerry Brown to declare a state of eme
Contracts permeate our lives: just think of the contract with your employer or your insurance provider or your聽bank to get聽a loan even your marriage is a contract. But why are they designed the way they are Economists Oliver Hart and Bengt Holmstr枚m developed a framework that allows us to understand and design better contracts. On Monday, the two U.S.-based economists were awarded a Nobel Prize in economic sciences for their contributions in contract theory. Key to contract theory is incentive. For example, a contract must incentivize employees to work in the interest of their employer via payment and other forms of compensation. Key to contract theory is incentive. For example, a contract must incentivize employees to work in the interest of their employer via payment and other forms of compensation.Holmstr枚ms contributions focused on the nee stanley cup d to balance this incentive with risk. stanley cup And since an employer is often able to shoulder this risk better than an employee, contract聽theory suggests that risk should be shared.As the Nobel committee explained, In industries with high risk, payment should thus be relatively more biased towards a fixed salary to offer employees stability while in more stable environments it should be more biased towards a performance measure to give employees incentive to work harder and not become complacent.This balance between risk a stanley cup nd incentives also applies to insurance contracts. We would love i Ndst Politics This Morning: What to Expect from the RNC
Northern California is being hit with a massive storm that pounding the state with rain, snow and strong winds. The National Weather Service considers it the strongest storm the state has seen in five years and expects it to dump as much as 8 inches of rain over a 24-hour period. Since the storm began last night, more than 90,000 San Franciscans have already lost power. Travel by train, ferry and air has been delayed across the San Francisco Bay Area. The power outage caused local public transportation systems, Muni and BART, to close two area stations, including one due to flooding. The FAA has issued a weather update saying that flights at San Francisco International Airport are arriving late by an average of three hours and 40 minutes.In a very rare occurrence, public and private schools have closed in San Francisco, Oakland and nearly all of Marin County.Flash flood warnings have been issued all over the Bay Area, in Sonoma, San Franci adidas originals sco, Santa Cruz, Napa, Marin, Contra Costa, Alameda, San Mateo, and Santa Clara counties. Many are worried about mud and debris slides adidas originals since this storm arrives right on the stanley cup heels of a year of intense drought and wildfires. Given the long-term drought and short鈥搕erm saturated ground, many trees will lose the battle to the wind on Thursday, said news station KPIX 5 meteorologist Paul Deanno. Over the past three years California has been in the midst of a record-shattering drought that caused Gov. Jerry Brown to declare a state of eme
