Faure-Grimaud, Antoine; Laffont, Jean-Jacques; … - C.E.P.R. Discussion Papers - 1998
supervisor who can acquire soft information about an agent's productivity. If the supervisor were risk-neutral, the principal … optimal contract trades-off the supervisor's incentives to reveal his information with an insurance motive. This contract can … be identified with the one obtained in a simple hard information model of hierarchical collusion with exogenous …