Abstract
We design incentive schemes for portfolio managers that screen low-skill managers: only the best portfolio managers, in terms of expected payoffs, agree to participate in a single-period investment. The results hold in general financial markets, where uninformed investors face managers of different capabilities, and can only observe their one-stage realized returns.
Original language | English |
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Pages (from-to) | 483-504 |
Number of pages | 22 |
Journal | Economic Theory |
Volume | 71 |
Issue number | 2 |
DOIs | |
State | Published - 1 Mar 2021 |
Keywords
- Investment game
- Reward schemes
- Screening problem
ASJC Scopus subject areas
- Economics and Econometrics