Pessimistic information gathering

Article dans une revue: An agent gathers information on productivity shocks and accordingly produces on behalf of a principal. Information gathering is imperfect and whether it succeeds or not depends on the agent's effort. Contracting frictions come from the fact that the agent is pessimistic on the issue of information gathering, and there are both moral hazard in information gathering, private information on productivity shocks and moral hazard on operating effort. An optimal menu of linear contracts mixes high-powered, productivity-dependent screening options following “good news” with a fixed low-powered option otherwise.

Auteur(s)

Elisabetta Iossa, David Martimort

Revue
  • Games and Economic Behavior
Date de publication
  • 2015
Mots-clés JEL
D82 H41
Mots-clés
  • Information gathering
  • Moral hazard
  • Asymmetric information
  • Pessimism
Pages
  • 75-96
Version
  • 1
Volume
  • 91