We analyze the problem of a Legislator dealing with privately informed whistleblowers. We identify their incentives to release distorted testimonies and characterize the second-best policy limiting this behavior. The key finding is that there exists a positive externality between criminal...

We characterize the degree of price discretion that competing principals award their agents in a framework where agents are informed about demand and seek to pass on their unveriÖable distribution costs to consumers at the principalsí expense. Principals learn demand probabilistically and may...