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The Costs and Benefits of Additional Information in Agency Models with Endogenous Information Structures

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Author Info
Hoppe, Eva I.
Schmitz, Patrick W.

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Abstract

We study the effect of additional private information in an agency model with an endogenous information structure. If more private information becomes available to the agent, this may hurt the agent, benefit the principal, and affect the total surplus ambiguously.

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Publisher Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7331.

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Date of creation: Jun 2009
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Handle: RePEc:cpr:ceprdp:7331

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Related research
Keywords: adverse selection; Hidden information; information gathering;

Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law

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This page was last updated on 2009-11-25.


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