We study a principal-agent model in which the principal has a production technology. The efficiency parameter of the principal's technology is not known to the agent. Alternatively, the principal can make the agent use a technology from a different channel. By gathering information at a cost,...

This paper considers an agency contracting with multiple alternative tasks. The agent is privately informed on some tasks, but he must gather information on the other tasks. We show that depending on the cost to gather information, choice of task is employed as an instrument to induce...

This paper provides a rationale for why an organization often generates a bias in favor of a new project even after learning that its profitability will be certainly below more conventional ones. We analyze a principal-agent model with two alternative projects, one of which is to be chosen by...