We analyze conditional optimization problems arising in discrete time Principal-Agent problems of delegated portfolio optimization  . Applying tools from Conditional Analysis to the case of linear contracts we show that most results known in the literature for very specific instances of the problem carry over to translation invariant and time-consistent utility functions in very general probabilistic settings  .
We analyze conditional optimization problems arising in discrete time Principal-Agent problems of delegated portfolio optimization with linear contracts . Applying tools from Conditional Analysis we show that some results known in the literature for very specific instances of the problem carry over to translation invariant and time-consistent utility functions in very general probabilistic settings . However, we find that optimal contracts must in general make use of derivatives for compensation .
A
with linear contracts
D
to the case of linear contracts
R
most
some
A
. However, we find that optimal contracts must in general make use of derivatives for compensation