We consider a model of moral hazard with limited liability of the agent and effort that is two-dimensional. One dimension of the agent’s effort is observable and the other is not. The principal can thusmake the contract conditional not only on outcome but also on observable effort. The...

As companies' environment is becoming increasingly volatile, scanning systems gain in importance. We propose a hybrid process model for such systems' information gathering and interpretation tasks that combines quantitative information derived from regression analyses and qualitative knowledge...