Thadden, Ernst-Ludwig; Zhao, Xiaojian - In: Theory and Decision 77 (2014) 2, pp. 197-222
The paper introduces the problem of unawareness into multi-dimensional Principal–Agent theory. We introduce two key … parameters to describe the problem, the extent and the effect of unawareness, show under what conditions it is optimal for the … Agents differ in their unawareness, optimal incentive schemes can be distorted for both aware and unaware Agents, because …