This paper examines managerial compensation in an environment where managers may take a hidden action that affects the actual earnings of the firm. When realized, these earnings constitute hidden information that is privately observed by the manager, who may expend resources to generate an...

This paper examines corporate tax evasion in the context of the contractual relationship between the shareholders of a firm and a tax manager who possesses private information regarding the extent of legally permissible reductions in taxable income, and who may also undertake illegal tax...

This article presents a model of bilaterial monopoly in which one of the agents possesses private information about actual production costs. The strategic disclosure of this information is used as a bargaining tactic in an attempt to appropriate the quasi rents resulting from production. We...