The authors analyze the principal-agent relationship when the principal has private information as a three-stage game: contract proposal, acceptance/refusal, and contract execution. They assume that the information does not directly affect the agent's payoff (private values). Equilibrium exists...

This article identifies biases in market portfolios of parallel research projects arising from the noncongruence of social goals and private aspirations, occasioned by those circumstances where the market rewards only the winner and where the winner is awarded the entire social surplus. It is...