Burguet, Roberto - Barcelona Graduate School of Economics (Barcelona GSE) - 2015
and the contractor sign the contract, the latter may bribe the inspector to misrepresent quality. Thus, the mechanism … on the size of the quality misrepresentation, and also uncertainty about the size of the bribe. In all cases, the optimal … contract curtails quality not only for low e¢ ciency contractors but also for the most efficient contractors. Implementation is …