Strategic information gathering before a contract is offered
Article Abstract:
An analysis of strategic information gathering before a principal offers a contract reveals that the agent's equilibrium strategy will be mixed with the probability of the agent acquiring information strictly between 0 and 1. The optimal contract the principal will offer an agent may be in the form of a contract where an uninformed agent obtains rent and may be asked to overproduce. It can also be a contract wherein the agent's production schedule is severely distorted, or a contract wherein it may be too costly to separate an informed from an uninformed agent.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1998
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Cheap talk in games with incomplete information
Article Abstract:
The addition of pre-play communication has extended the Bayesian games.The Full revelation of private information and the application of the analysis to different examples of Cournot and Bertrand duopolies are provided.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 2003
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