Each period, a principal must assign one of two agents to a new task. Profit is stochastically higher when the agent is qualified for the task, but the principal cannot observe qualification. Her only decision is which of the two agents to assign, if any, given the public history of selections...

Basic decision and preference theory -- Household theory and theory of the firm -- Games and industrial organization -- Bargaining theory and Pareto optimality -- Bayesian games and mechanism design -- Perfect competition and competition policy -- Contracts and principal-agent theories.