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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 ...


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 ...


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