Behavioral Foundations of Contract Theory

Term paper completed for the Research Module in Management and Applied Microeconomics at the University of Bonn (December 2024).

Supervisors: Prof. Botond Kőszegi, Ph.D. and Dr. Jesper Armouti-Hansen

Topic: Moral hazard and other-regarding preferences in Principal-Agent models

Co-authors: Jan Op de Laak, Paul Berrisch

---

My Contributions

• Section 2: Mathematical formalization of the Principal-Agent model
• Appendix A: Formal proofs of Propositions 1 and 3
• Section 3.2: Critical analysis of model weaknesses
• LaTeX formatting and proofreading