DP7331 The Costs and Benefits of Additional Information in Agency Models with Endogenous Information Structures
|Author(s):||Eva I Hoppe-Fischer, Patrick W. Schmitz|
|Publication Date:||June 2009|
|Keyword(s):||adverse selection, Hidden information, information gathering|
|JEL(s):||C72, D82, D86|
|Programme Areas:||Industrial Organization|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=7331|
We study the effect of additional private information in an agency model with an endogenous information structure. If more private information becomes available to the agent, this may hurt the agent, benefit the principal, and affect the total surplus ambiguously.