evaluation to the agent if the evaluation turns out to be bad. The justification assures the agent that the principal has not … her evaluation. For good performance, however, the principal pays a constant high wage without justification. Furthermore …Should principals explain and justify their evaluations? In this paper the principal's evaluation is private …

This paper studies the effect of disclosing conflicts of interests on strategic communication when the sender has lying … costs. I present a simple economic channel under which such disclosure often leads to more biased messages. This hurts … receivers who are naive or delegate their choice while rational receivers benefit from disclosure. The results hold …