The authors analyze the Shapley value allocation of an economy with differential information. They address the following questions: How do coalitions of agents share their private information? How can one measure the information advantage or superiority of an agent? Is each agent's private...

The paper analyzes choice-theoretic costly enforcement in an intertemporal contracting model with a differentially informed investor and entrepreneur. An intertemporal contract is modeled as a mechanism with limited commitment to payment and enforcement decisions. The paper shows that simple...