Transferable deposits as a screening mechanism

David Lagziel, Ehud Lehrer

Research output: Contribution to journalArticlepeer-review


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 languageEnglish
Pages (from-to)483-504
Number of pages22
JournalEconomic Theory
Issue number2
StatePublished - 1 Mar 2021


  • Investment game
  • Reward schemes
  • Screening problem

ASJC Scopus subject areas

  • Economics and Econometrics


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