information. This strategy affects the properties of the optimal contract, which grows closer to the first best. This research …

seller's valuation and the buyer's valuation, and the buyer evaluates each contract according to its worst-case performance … over a set of probability distributions. This paper demonstrates that the contract that maximizes the minimum payoff over … contract for any given probability distribution is a posted price, which induces bunching. Using the e-contamination model …

principle, the optimal contract under non-verifiability is derived by employing the theory of communication equilibrium. …