Contracts and productive information gathering

We modify a standard Baron-Myerson model by assuming that, instead of knowing the state of nature, the agent has to incur a cost, (g) , to learn it. Under these conditions, the principal will offer contracts that, depending on the value of (g), incite the agent to gather or not to gather information. We study tradeoffs that are involved

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Year of publication:	1997-01-01
Authors:	Cremer, J. ; Khalil, F. ; Rochet, J-C.
Institutions:	Economics Division, University of Southampton

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Series:	Discussion Paper Series In Economics And Econometrics.
Type of publication:	Book / Working Paper
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005110105