WP 2010-13 Dynamic Contracting under Imperfect Public Information and Asymmetric Beliefs

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Published in 2013 in Journal of Economic Dynamics and Control, Volume 37, Issue 12.

ABSTRACT. We develop a dynamic principal–agent model to show how imperfect public information and asymmetric beliefs, asymmetric risk attitudes, complementary actions by both parties, and inter-temporal adverse selection arising from the agent’s unobservable actions interact to affect… more »