Contracts and Productive Information Gathering

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Contracts and Productive Information Gathering

Author Info

Khalil, F
Rochet, J-C

Additional information is available for the following registered author(s):

Jean Charles Rochet

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 "c" to learn it. Under these conditions, the principal will offer contracts that, dependind on the value of "c", try to induce the agent to gather or not information. We study the tradeoffs that are involved.

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Publisher Info
Paper provided by Department of Economics at the University of Washington in its series Discussion Papers in Economics at the University of Washington with number 97-16.

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Length: 23 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:washer:97-16

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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.
- Cremer, J. & Khalil, F. & Rochet, J-C., 1997. "Contracts and Productive Information Gathering," Papers 97.468, Toulouse - GREMAQ.

Find related papers by JEL classification:
C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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