Milbourn, Todd T; Shockley, Richard L; Thakor, Anjan V - In: RAND Journal of Economics 32 (2001) 2, pp. 334-51
We extend the "implicit incentives" literature by analyzing how career concerns impact a risk-neutral manager's decision of how much to learn about a project before investing in it. The manager has unknown ability that determines the probability with which a good project is available, so the...