Danau, Daniel; Vinella, Annalisa - Centre de Recherche en Économie et Management (CREM) - 2012
expected cost and cost variability and, subsequently, learns the realized cost as well. As the principal's marginal surplus … inefficient types, and to misrepresent the cost variability relative to the expected cost. When the principal's knowledge … imperfection about the cost variability is sufficiently less important than that about the expected cost, quantities are pooled …