Hagedorn, Marcus; Kaul, Ashok; Mennel, Tim - Zentrum für Europäische Integrationsforschung (ZEI), … - 2002
environment. In contrast, the contract of the bad searcher is distorted by an adverse selection effect, so that it tends to have … different search costs and have private information about their type. We derive a recursive solution of our dynamic adverse … selection problem with repeated moral hazard. Conditions under which the UI agency should always offer separating contracts are …