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which is why for the purposes of this i will be arguing against this idea of a one time fee and then thats it in favour of some form of payment schedule that contains a variable dependent on output because otherwise i really can't see this arrangement being even close to pareto efficent

ok but what is his incentive to manage my account to the best of his ability if i have already paid my fee? Also Chevalier and Ellison 97 showed that because mutual funds recieve a fixed percentage of assets under management as compensation they will have an incentive to take whatever action...

Thanks ever so much for the speedy reply! Ok so is it fair to say that under the commission scheme they have a conflict of interest? So if they were only to adjust my exposure to risk every 4 months i have two questions; 1) What happens if my exposure changes significantly after one...

Hi guys, I am an economics undergraduate writing an essay on creating a reward scheme that provides an incentive for my financial advisor to deliver the level of effort on planning my selection of risky investments that creates a return (dependent on effort and some random exogenous variable)...