Demougin, Dominique; Fluet, Claude - In: Journal of Institutional and Theoretical Economics (JITE) 154 (1998) 4, pp. 622-622
This paper analyzes the efficient use of information in an agency relationship with moral hazard, when parties are risk-neutral. We show that, given an arbitrary information system, all relevant information from a mechanism-design point of view can be summarized by a binary statistic. We then...