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The author considers the problem of implementation when a principal hires many agents and is not able to monitor their actions. He distinguishes two cases: (1) when actions are mutually observable among agents; and (2) when actions are not observable. In (1), there is a mechanism in which th e...
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A lecture to graduate students of the joint Economics Ph.D. program of the Department of Economics, University of Bergen, and the Norwegian School of Economics.
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Abstract A principal needs a worker for the production of a good. The worker can be hired as an internal agent, or an external agent under a contract. These two organizational modes correspond to in-house production and outsourcing, respectively. In each case, the agent earns experience...
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Abstract
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