Information provision before a contract is offered

C-Tier
Journal: Economics Letters
Year: 2014
Volume: 124
Issue: 3
Pages: 490-493

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

This paper considers an agency model in which the agent can update the principal’s belief before the contract is offered. We identify that the agent who has a bad potential to perform the task has a small chance to receive information rent, but if he receives it, he receives a large amount. Thus, the agent may choose to provide more information that shifts the principal’s belief to the negative direction if the prior belief is optimistic.

Technical Details

RePEc Handle
repec:eee:ecolet:v:124:y:2014:i:3:p:490-493
Journal Field
General
Author Count
2
Added to Database
2026-01-25