I study the optimal incentive provision in a principal–agent relationship with costly information acquisition by the agent. I emphasize that adverse selection or moral hazard is the principal's endogenous choice by inducing or deterring information acquisition. The principal designs the...

I study the optimal team incentive when the agents can coordinate private actions through repeated interaction with imperfect public monitoring. The agents are able to imperfectly infer each other's private actions via the stochastically correlated measurements. Correlation of measurement noise,...