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We study the implications of honesty when it requires pre-commitment. Within a two-period hidden information problem … misrepresent their ethics. The principal and dishonest agents benefit from an increased likelihood of honesty as long as honesty is …
Persistent link: https://www.econbiz.de/10004968833
We explore the potential for discriminating between honest and dishonest agents, when a principal faces an agent with private information about the circumstances of the exchange (good or bad). When honest agents reveal circumstances truthfully independently of the contract offered, the principal...
Persistent link: https://www.econbiz.de/10004968840