Optimal Contract with Moral Hazard for Public Private Partnerships∗Optimal Contract With Moral Hazard for Public Private Partnerships • March 7th, 2017
which bounds v from above on R+. Besides, the constant control Rt = k; At = 0, dt dP, a.e., is admissible and incentive compatible (the best consortium’s response to a minimum rent is zero effort). Using this control implies that ∀x ≥ 0, v(x) ≥ 0. •
