I consider a situation, where the agent can acquire payoff-relevant information either before or after the contract is … signed. To raise efficiency, the principal might solicit information; to retain all surplus, however, she must prevent … precontractual information gathering. The following class of stochastic contracts may solve this trade-off optimally: before signing …

Many information structures generate correlated rather than mutually independent signals, the news media being a prime … and treat correlated information as independent. In consequence, people s beliefs are excessively sensitive to well …-conncected information sources, implying a pattern of overshooting beliefs. Additionally, in an experimental asset market, correlation …