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A principal provides incentives for independent agents. The principal cannot observe the agents' actions, nor does she know the entire set of actions available to them. It is shown that an anti-informativeness principle holds: very generally, robustly optimal contracts must link the incentive...
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Empirical research typically involves a robustness-efficiency tradeoff. A researcher seeking to estimate a scalar …
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's available actions. Principals demand robustness and evaluate contracts on a worst-case basis. This robust approach allows for a …
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