Abstract:
This paper studies the informational content of elective teams in a dynamic agency framework with adverse selection. Two agents with different employment histories are paid their conditional expected marginal product. They observe their types (good or bad), and chooose between working together or separately. We characterize the distributions on agents' types, nature and wages such that teams are formed exclusively by good-type agents, with and without side payments.
Keywords:ADVERSE SELECTION; INFORMATION (search for similar items in EconPapers) JEL-codes:D82D83 (search for similar items in EconPapers) Date: 1998
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More papers in Working Papers from Ecole des Hautes Etudes Commerciales de Montreal- Address: Canada; ECOLE DES HAUTES ETUDES COMMERCIALES (H.E.C.), 5255 DECELLES MONTREAL H3T 1V6 QUEBEC Contact information at EDIRC. Series data maintained by Thomas Krichel ().
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