Digital Libraries. Research and Technology Advances: ADL'95

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A number in that range can be encoded using just 20 bits. Instead of examining the incentives of the informed agent to maximize uncontractible effort as is done above (a moral hazard problem), Rabin showed that the adverse selection problem could also be sufficiently severe that, in certain equilibria, an informed agent could only "prove" the value of his information by taking control of the firm and its residual income stream.

Pages: 298

Publisher: Springer; 1996 edition (June 13, 2008)

ISBN: 3540614109

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