We consider a market where standard” risk-neutral agents coexist with “goalorented” agents who, in addition to the expected income, seek a high-enough monetary payo (the trigger”) to fulll a goal. We analyze a two-sided one-to-one matching model where the matching between principals and agents and incentive contracts are endogenous. In any equilibrium contract, goal-oriented agents are matched with the principals with best projects and receive the trigger with positive probability. Moreover, goal and monetary incentives are complementary: goaloriented agents receive stronger monetary incentives. Finally, we discuss policy interventions in relevant environments..
Goal-oriented agents in a market
17 July 2020