Lopomo, Giuseppe; Rigotti, Luca; Shannon, Chris - In: Journal of Economic Theory 146 (2011) 3, pp. 1148-1172
This paper presents a principal-agent model in which the agent has imprecise beliefs. We model this situation formally by assuming the agent[modifier letter apostrophe]s preferences are incomplete as in Bewley (1986) [2]. In this setting, incentives must be robust to Knightian uncertainty. We...