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We augment the standard career concerns model by introducing (i) an action that blocks the information about the true state of the world and (ii) a second opinion/interim news after the initial consultation with the expert. In this model, the principal's action as well as the expert's message...
Persistent link: https://www.econbiz.de/10015224552
We develop a reputational cheap talk model where the principal can cancel an action initially started on the advice of an expert if she gets an unfavorable interim news. But if the status quo is reinstated, the principal is unable to verify the true state of the world. In the model, experts want...
Persistent link: https://www.econbiz.de/10015230176