This paper generalizes a conceptual insight in dynamic contracting with quasilinear payoffs: the principal does not need to pay any information rents for extracting the agent's 'new' private information obtained after signing the contract. This is shown in a general model in which the agent's...

Consider an agent (manager, artist, etc.) who has imperfect private information about his productivity. At the beginning of his career (period 1, short run"), the agent chooses among publicly observable actions that generate imperfect signals of his productivity. The actions can be ranked...

We develop a model of consulting (advising) where the role of the consultant is that she can reveal signals to her client which refine the client’s original private estimate of the profitability of a project. Importantly, only the client can observe or evaluate these signals, the consultant...

In games with costly signaling, some equilibria are vulnerable to deviations which could be unambiguously interpreted as coming from a unique set of Sender-types. This occurs when these types are precisely the ones who gain from deviating for any beliefs the Re-ceiver could form over that set....

We show that the efficient allocation of production capacity can turn a competitive industry and downstream market into an imperfectly competitive one. Even though downstream firms have symmetric production technologies, the downstream industry structure will be symmetric only if capacity is...

We show that the efficient allocation of production capacity can turn a competitive industry and downstream market into an imperfectly competitive one. Even though downstream firms have symmetric production technologies, the downstream industry structure will be symmetric only if capacity is...

In games with costly signaling, some equilibria are vulnerable to deviations which could be "unambiguously" interpreted as coming from a unique set of Sender-types. This occurs when these types are precisely the ones who gain from deviating for any beliefs the Re-ceiver could form over that set....

Consider an agent (manager, artist, etc.) who has imperfect private information about his productivity. At the beginning of his career (period 1, short runʺ), the agent chooses among publicly observable actions that generate imperfect signals of his productivity. The actions can be ranked...