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incentives with those of outside investors (moral hazard) or to signal favorable information about the quality of the firm …
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We study optimal direct mechanisms for a credence goods expert who can be altruistic or spiteful. The expert has private information about her distributional preferences and possibly also about her customer's needs. We introduce a method that allows the customer to offer separate contracts to...
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bargaining, leading to stronger effort incentives and higher output. However, it also reduces incentives for labor market …
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