The article studies an adverse selection model in which a contractible, imperfect signal on the agent's type is revealed ex post. The agent is wealth constrained, which implies that the maximum penalty depends on the contracted transaction (e.g., the volume of trade). First, we show that the...

Gilligan and Krebbiel (1989) analyse bipartisanship in committees through a model in which committee ideal points are exactly symmetric about the floor's ideal point. This article has three objectives: it shows that the Gilligan and Krebbiel equilibrium does not generalize to asymmetric...

I study a simple principal agent screening model where the agent's type determines hispayoff as well as his preferences over activity levels. The agent's activity inflicts a payoffexternality on the principal, and she proposes a revelation mechanism to the agent.When the agent needs the...