Sadanand, Asha; Sadanand, Venkatraman; Marks, Denton - In: Canadian Journal of Economics 22 (1989) 3, pp. 643-61
This paper examines a two-period principal and agent model where the agent's ability level is not observable to the principal and revealed to the agent only after the contract is signed. The value of the agent's output to the principal is affected by the agent's collegiality, which is unknown to...