Kazuyuki Higashi, ‘Designing Contracts and Information Jointly’

ABSTRACT
We consider a Bayesian persuasion problem with hidden action. When the principal can decide on both information structure and monetary transfer, which relies on the stochastic output, then full separation or full pooling contract is optimal.

Higashi, Kazuyuki, Designing Contracts and Information Jointly (March 17, 2024).

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