Observability of information acquisition in agency models

C-Tier
Journal: Economics Letters
Year: 2013
Volume: 119
Issue: 1
Pages: 104-107

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

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

Abstract

We consider an adverse selection model in which the agent can gather private information before the principal offers the contract. In scenario I, information gathering is a hidden action, while in scenario II, it is observable. We study how the two scenarios differ. Specifically, the principal may be better off when information gathering is a hidden action.

Technical Details

RePEc Handle
repec:eee:ecolet:v:119:y:2013:i:1:p:104-107
Journal Field
General
Author Count
1
Added to Database
2026-02-02