Abstract
This article characterizes the properties of the compensation scheme of delegated portfolio management that would lead to the selection of high risk-high return portfolios. In particular, it provides conditions under which a non-monotone payment structure emerges as an optimal contract, which rewards extreme results and punishes moderate ones.
| Translated title of the contribution | Incentive schemes and innovative portfolios |
|---|---|
| Original language | Spanish |
| Pages (from-to) | 43-66 |
| Number of pages | 24 |
| Journal | Estudios de Economia |
| Volume | 37 |
| Issue number | 1 |
| Publication status | Published - 1 Jun 2010 |
ASJC Scopus subject areas
- Economics and Econometrics