Article ID Journal Published Year Pages File Type
5061845 Economics Letters 2008 4 Pages PDF
Abstract

A risk-neutral seller exerts effort while producing a good. The risk-neutral buyer can gather private information about his valuation. The ex ante optimal contract may encourage information gathering, although it is ex post efficient to trade regardless of the valuation.

Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Information gathering and the hold-up problem in a complete contracting framework
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