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corruption 1 moral hazard 1 soft information 1 supervision 1 truthful reporting 1
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Free 1
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Book / Working Paper 1
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Undetermined 1
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De Chiara, Alessandro 1 Livio, Luca 1
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European Centre for Advanced Research in Economics and Statistics (ECARES), Solvay Brussels School of Economics and Management 1
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Working Papers ECARES 1
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Truthful Reporting, Moral Hazard and Purely Soft Information
De Chiara, Alessandro; Livio, Luca - European Centre for Advanced Research in Economics and … - 2012
We examine a hierarchical model where a principal hires a risk averse supervisor to monitor the e ort exerted by a productive agent. We assume that the supervisor can misreport the collected evidence without incurring any cost. We develop a corruption-proof contract which makes it sequentially...
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