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The main formal tasks of the information security risk management process using functional and contextual models reflecting the basic concepts and basic functions of information security risk management systems.
This paper develops a kind of generalized double-sided moral hazard model of contract choice with Cobb-Douglas technology in a frame of principal-agent theory. Using this model, we formally prove that the optimal contract maximizes the output net of the disutility of both the parties and carry out some simulations exercise under two special cases which help explain the double-sided moral hazard issues...
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