Contracts with Endogenous Information
Dezsoe Szalay ()
The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics
I study covert information acquisition and reporting in a principal agent problem allowing for general technologies of information acquisition. When posteriors satisfy local versions of the standard First Order Stochastic Dominance and Concavity/Convexity of the Distribution Function conditions, a first-order approach is justified. Under the same conditions, informativeness and riskiness of reports are equivalent. High powered contracts, that make the agents informational rents more risky, are used to increase incentives for information acquisition, insensitive contracts are used to reduce incentives for information gathering. The value of information to the agent is always positive. The value of information to the principal is ambiguous.
Keywords: Asymmetric Information; Mechanism Design; Information Acquisition; Stochastic Ordering; Value of Information (search for similar items in EconPapers)
JEL-codes: D82 D83 L51 (search for similar items in EconPapers)
Pages: 46 pages
New Economics Papers: this item is included in nep-ict
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://warwick.ac.uk/fac/soc/economics/research/w ... s/2008/twerp_780.pdf
Journal Article: Contracts with endogenous information (2009)
Working Paper: Contracts with Endogenous Information (2006)
Working Paper: Contracts with Endogenous Information (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:780
Access Statistics for this paper
More papers in The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Margaret Nash ().