Rosa, Leonidas Enrique de la - School of Economics and Management, University of Aarhus - 2007
principal and agent knowingly hold asymmetric beliefs regarding the prob- ability of success of their enterprise. Agent …-hazard
framework in which principal and agent knowingly hold asymmetric beliefs regarding the prob-
ability of success of their … it more likely that high levels of e�ort are
implemented in equilibrium.
Keywords: overcon�dence, heterogeneous beliefs …