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The Theory of Incentives: The Principal-Agent Model (9780691091846): Jean-Jacques Laffont, David Martimort: Books. Incentive theory is at the very core of economics. This text is a masterly exposition of the modern theory by one of the pioneers of the field, Jean-Jacques Laffont, together with one of its rising stars, David Martimort. - Eric Maskin, Institute for Advanced Study This book will surely be the standard technical reference in an important field for a number of years - possibly for many if the field ceases to develop so rapidly. It is indeed a fine contribution to the economics literature. - Sir James Mirrlees, Cambridge University, 1996 Nobel Laureate in Economic Sciences The most important development in economics in the last forty years has been the study of incentives to achieve potential mutual gains when the parties have different degrees of knowledge. The time is ripe for a synthesis and systematization. Jean-Jacques Laffont has been one of the most important contributors to the field over the years, and David Martimort has shown his capacity for highly original work. This book combines clarity, thoroughness, and great respect for historical development. - Kenneth J. Arrow, Stanford University, 1972 Nobel Laureate in Economic Sciences

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