On the role of commitment in a principal-agent relationship with an informed principal
Article Abstract:
A principal-agent relationship is used to evaluate the importance of commitment on the flow of information in an equilibrium. A model that assumes agent independent decision and principal's fixed monitoring costs on agent's preference indicates that the principal's private information can be divulged if he is committed to his subsequent actions. The principal's non-commitment to his announcements and inability to monitor the agent's actions will result in non-pooling equilibria.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1996
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The timing of information in a general equilibrium framework
Article Abstract:
An analysis of the function of information in a general equilibrium setting is presented. The analysis considers multiperiod models of asset markets and assumes that information infiltration is accepted by traders. Results show that traders who are providedwith the choice of information release which does not allow dynamic market completeness will consider the given option. In addition, heterogeneity in markets increases such a possibility.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1993
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Communication, commitment, and growth
Article Abstract:
An analysis of the impact on economic development of variable financing opportunities is presented. The analysis considers accumulation mechanisms which are designed for economies which vary in incentive schemes. It is shown that a computable efficient transfer mechanism which does not alter capital accumulation and investment patterns can be developed under conditions of information borrowing constraints.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1992
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