T. V. S. Ramamohan Rao Livres

Focusing on the behavioral responses of management, this book explores decision-making across various firm activities, including production and finance, while considering market conditions that range from stable to uncertain. It highlights the potential gap between achieved objectives and maximum possible outcomes due to managerial discretion. The author presents a conceptual framework and measurement methods, suggesting the development of machine learning algorithms to enhance strategic decision-making. This resource is valuable for both researchers and corporate decision-makers.

The book provides an integrated approach to risk sharing, risk spreading and efficient regulation through principal agent models. It emphasizes the role of information asymmetry and risk sharing in contracts as an alternative to transaction cost considerations. It examines how contracting, as an institutional mechanism to conduct transactions, spreads risks while attempting consolidation. It further highlights the shifting emphasis in contracts from Coasian transaction cost saving to risk sharing and shows how it creates difficulties associated with risk spreading, and emphasizes the need for efficient regulation of contracts at various levels. Each of the chapters is structured using a principal agent model, and all chapters incorporate adverse selection (and exogenous randomness) as a result of information asymmetry, as well as moral hazard (and endogenous randomness) due to the self-interest-seeking behavior on the part of the participants.