5

I'm not sure what exactly you're looking for, but here are some wild guesses: Bolton and Dewatripont (2005) Contract Theory, MIT Press. [Probably Chapters 5 and 6] Maskin and Tirole (1990) "The Principal-Agent Relationship with an Informed Principal: The Case of Private Values", Econometrica 58: 379-409. Maskin and Tirole (1992) "The ...


4

Contracting with an informed principal is not so easy because the agent can learn about the principal's type from the kind of contract offered. This introduces signaling, which can quickly get messy. The other answer already mentioned the three seminal papers in that literature. I think Myerson's paper fits best for your goal to understand moral hazard with ...


2

While it's not explicitly mentioned in the question, it seems safe to assume that the manager gets to observe separately the outcome of each worker, i.e. the value of $v_i$ for $i=1,2$. If this is the case, the IR and IC conditions depend on the exact terms of the contract. For example, suppose the manager conditions each worker $i$'s wage on both $v_i$ and $...


1

Think about an auction, where the designer is selling good and trying to sell it to the person that values it the most while collecting as much revenue as possible. A direct mechanism means that the seller asks buyers for how much they value the good and based on that decides who gets the good and how much they pay. Suppose that the designer uses a second-...


Only top voted, non community-wiki answers of a minimum length are eligible