Contracts with endogenous information

B-Tier
Journal: Games and Economic Behavior
Year: 2009
Volume: 65
Issue: 2
Pages: 586-625

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I study covert information acquisition and reporting in a principal agent problem allowing for general technologies of information acquisition. When posteriors satisfy two dimensional versions of the standard First Order Stochastic Dominance and Concavity/Convexity of the Distribution Function conditions, a first-order approach is justified. Under the same conditions, informativeness and riskiness of reports are equivalent. High powered contracts, that make the agent's informational rents more risky, are used to increase incentives for information acquisition, insensitive contracts are used to reduce incentives for information gathering. The value of information to the agent is always positive. The value of information to the principal is ambiguous.

Technical Details

RePEc Handle
repec:eee:gamebe:v:65:y:2009:i:2:p:586-625
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29