Clots-Figueras, Irma; Hernán, Roberto; Kujal, Praveen - Departamento de Economía, Universidad Carlos III de Madrid - 2012
Several situations in our daily interactions are characterized by uncertainty and asymmetric information regarding the final outcomes. For example, an investor may overstate a project’s value, or a superior may choose to under, or over, state the gains from a project to a subordinate. We...