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distortion is due to the externalities on agents' reservation utilities. In contrast, when the principal's offers are privately … observed, the distortion is due to the externalities arising at efficient trade profiles. When the principal can commit to an …
Persistent link: https://www.econbiz.de/10014216292
distortion is due to the externalities on agents' reservation utilities. In contrast, when the principal's offers are privately … observed, the distortion is due to the externalities arising at efficient trade profiles. When the principal can commit to an …
Persistent link: https://www.econbiz.de/10014209684
commitment. By allowing the principal to use general communication devices we overcome the literature's common, but overly … restrictive focus on one-shot, direct communication. In addition, general communication devices solve two fundamental problems of … the message spaces of the communication device. An example illustrates our arguments and the suboptimality of one …
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Should principals explain and justify their evaluations? In this paper the principal's evaluation is private information, but she can provide justification by sending a costly cheap-talk message. I show that the principal explains her evaluation to the agent if the evaluation turns out to be...
Persistent link: https://www.econbiz.de/10009569527
Should principals explain and justify their evaluations? Suppose the principal's evaluation is private information, but she can provide justification by sending a costly cheap-talk message. If she does not provide justification, her message space is restricted, but the message is costless. I...
Persistent link: https://www.econbiz.de/10010361447