Article ID Journal Published Year Pages File Type
5061510 Economics Letters 2009 4 Pages PDF
Abstract
When an agent overstates his/her true performance, a rational market can still correctly guess the true performance. This paper shows, however, that such rational market expectation and a profit-maximizing principal can exacerbate the lack of productive effort by the agent.
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Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Overstatement and rational market expectation
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