Information gathering and the hold-up problem in a complete contracting framework

A risk-neutral seller exerts effort while producing a good. The risk-neutral buyer can gather private information about his valuation. The ex ante optimal contract may encourage information gathering, although it is ex post efficient to trade regardless of the valuation.

MoreLess

Year of publication:	2008
Authors:	Schmitz, Patrick W.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 101.2008, 3, p. 268-271
Publisher:	Elsevier
Keywords:	Information gathering Hold-up problem Complete contracting

More details

Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005158989