If a stochastically monotone aggregate of asymmetrically informed individuals' expectations of a random variable is common information, then the aggregate must be a sufficient statistic, and all the individuals must have the same relevant information and agree on their expectations. If a...

The literature analyzing games where some players have private information about their "types" is usually based on the duality of "good" and "bad" types (GB approach), where "good" type denotes the type with better quality. In contrast, this paper analyzes a signalling game without types...

We analyze a model with two-dimensional asymmetric information where the employer has better information about the firm's earnings potential and the employee is subject to moral hazard. The employee's contract consists of an annual bonus and stock options. We focus on two issues: how different...

Voluntary agreements with industry offer many examplesof overcompliance with respect to environmentalstandards. Such phenomena seem to be irrational butappear less surprising considering firms' strategiesare aimed to internalise environmental quality. Wemodel the choice of the environmental...

This paper proposes a model for a certification market with an imperfect testing technology. Such a technology only assures that whenever two products are tested the higher quality product is more likely to pass than the lower quality one.When only one certifier with such testing technology is...

We study the impact of different contractual arrangements within the hospital on the optimal contracts designed by third party payers when severity is hospital's private information. We develop a multi-issue bargaining process between doctors and managers within the hospital. Results are then...

This essay examines the economics of patronage and the roles of asymmetric information and reputation in the early modern reorganization of scientific activities, specifically their influence upon the historical formation of key elements in the ethos and organizational structure of publicly...