We examine the issue of learning in a generalized principal-agent model with incomplete information. We show that there are situations in which the agent prefers a Bayesian regulator to have more information about his private type. Moreover, the outcome of the Bayesian mechanism regulating the agent is path-dependent; i.e. the convergence of the regulator's belief to the truth does not always yield the complete information outcome.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
1899.
Length: Date of creation: Apr 2005 Date of revision: Publication status: Published in Economics Bulletin 12.3(2007): pp. 1-10 Handle: RePEc:pra:mprapa:1899
Find related papers by JEL classification: D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
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