Jérome, Pouyet; Bernard, Salanié; Francois, Salanié - In: The B.E. Journal of Theoretical Economics 8 (2008) 1, pp. 1-16
Asymmetric information is widely supposed to impair the functioning of markets. We show that the presence of competition may invalidate this intuition. Consider a market in which principals compete for attracting heterogeneous agents by offering contracts. Suppose contracts are exclusive, and...