Contracts and Productive Information Gathering

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Contracts and Productive Information Gathering

Author Info

Cremer, J.
Khalil, F.
Rochet, J-C.

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Abstract

We modify a standard Baron-Myerson model by assuming that, instead of knowing the cost of nature, the agent has to incur a cost 'g' to learn it.Under these conditions, the principal will offer contracts that, dependingon the value of 'g', try to induce the agent to gather or not to gather information. We study the tradeoffs that are involved.

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Publisher Info
Paper provided by Toulouse - GREMAQ in its series Papers with number 97.468.

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Length: 25 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:gremaq:97.468

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Related research
Keywords: INFORMATION;

Other versions of this item:

Article
- Cremer, Jacques & Khalil, Fahad & Rochet, Jean-Charles, 1998. "Contracts and Productive Information Gathering," Games and Economic Behavior, Elsevier, vol. 25(2), pages 174-193, November. [Downloadable!] (restricted)
Paper
- Khalil, F & Rochet, J-C, 1997. "Contracts and Productive Information Gathering," Working Papers 97-16, University of Washington, Department of Economics.
- Cremer, J. & Khalil, F. & Rochet, J-C., 1997. "Contracts and Productive Information Gathering," Discussion Paper Series In Economics And Econometrics 9707, Economics Division, School of Social Sciences, University of Southampton.
- Khalil, F & Rochet, J-C, 1997. "Contracts and Productive Information Gathering," Discussion Papers in Economics at the University of Washington 97-16, Department of Economics at the University of Washington.

Find related papers by JEL classification:
D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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