In this study we identify necessary and sufficient conditions for sufficient statistics to strictly (Pareto) dominate all nonsufficient statistics as information for contracting in agencies with moral hazard. We first observe that strict dominance requires that an optimal compensation scheme...

I: Introduction -- John E. Butterworth’s Pioneering Contributions to the Accounting and Information Economics Literature -- to the Research Papers in this Volume -- II: Information Evaluation in Multiperson Contexts -- 1. Blackwell Informativeness and Sufficient Statistics with Applications to...