The Virtue of Being Underestimated: A Note on Discriminatory Contracts in Hidden Information Models

A standard hidden information model is considered to study the influence of the a priori productivity distribution on the optimal contract. A priori more productive (hazard rate dominant) agents work less, enjoy lower rents, but generate a higher expected surplus.

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Year of publication:	2001-08
Authors:	Schnedler, Wendelin
Institutions:	Institute for the Study of Labor (IZA)
Subject:	Adverse selection \| statistical discrimination \| stochastic order relation

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Extent:	application/pdf
Series:	IZA Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 5 Number 342 18 pages
Classification:	D82 - Asymmetric and Private Information ; J71 - Discrimination
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005761912