On young Turks and yes men: optimal contracting for advice.
We study contracting for advice by an agent about how much a principal should invest in a project. Providing the agent with incentives to perform research endogenously generates incentives for her to misreport the results. For high‐cost (low‐cost) projects, she wishes to overstate (understate) the m...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 53; no. 1; pp. 63 - 95 |
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| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
Wiley-Blackwell
Mar2022
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=155782244&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 155782244 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Mar2022 vid: 53 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 155782244 10.1111/1756-2171.12400 ppf: 63 ppct: 32 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 417KB tig: atl: On young Turks and yes men: optimal contracting for advice. aug: au: Häfner, Samuel Taylor, Curtis R. affil: Web3 Foundation Duke University su: Contracts Rent Advice Wishes sug: subj: Contracts Rent Advice Wishes ab: We study contracting for advice by an agent about how much a principal should invest in a project. Providing the agent with incentives to perform research endogenously generates incentives for her to misreport the results. For high‐cost (low‐cost) projects, she wishes to overstate (understate) the magnitude—though not the direction—of her research findings. For high‐cost projects, the principal mitigates the concomitant agency rents by committing to ignore extreme (Young‐Turk) recommendations, whereas for low‐cost projects, he ignores mild (Yes‐Man) ones. These results are shown to be robust to several natural extensions of the model. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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