Römeis, Fabio; Herweg, Fabian; Müller, Daniel - In: Games 13 (2022) 1, pp. 1-22
In this study, we enrich a standard principal-agent model with hidden action by introducing salience-biased perception on the agent's side. The agent's misguided focus on salient payoffs, which leads the agent's and the principal's probability assessments to diverge, has two effects: First, the...
