Delegated Expertise: When are good projects bad news?

E. Feess*, M. Walzl

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review


We analyze a model of delegated expertise with limited liability where the agent's information depends on his unobservable effort. The principal's profit may decrease in the percentage of good projects if and only if the agent has private information.
Original languageEnglish
Pages (from-to)77-82
Number of pages5
JournalEconomics Letters
Issue number82
Publication statusPublished - 1 Jan 2004

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