Hire Contract Principal allows agent to retain $12 for each carving sold. Agent has to pay $12 to purchase each duck.
{"Image DocumentName": "Hire ContractPrincipal allows agent to retain  12 for each carving sold. Agent has to pay  12 to purchase each duck.", "Image ImageDescription": "Therefore indifferent between participating or not. With supervision, instructed to sell the profit maximising q he gets zero profit and fails to join. Principal pays  14. Agent tries to maximise sales not profits. If agent controls sales their profit is: Contract is not incentive compatible.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}