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the optimal contract and analyze how it changes with informativeness. We consider a standard agency model with risk …-neutrality and limited liability, where the optimal contract is a call option. The direct effect of reducing signal volatility is a …
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the optimal contract and analyze how it changes with informativeness. We consider a standard agency model with risk …-neutrality and limited liability, where the optimal contract is a call option. The direct effect of reducing signal volatility is a …
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