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- W2993817539 abstract "A principal has to take a binary decision. She relies on information privately held by a completely biased agent. The principal cannot incentivize with transfers but can learn the agent's information at a cost. Additionally, the principal privately observes a signal correlated with the agent's type. Transparent mechanisms are optimal: unlike in standard results with correlation, the principal's payoff is the same as if her signal was public. They take a simple cut-off form: favorable signals ensure the agent's preferred action. Signals below this cut-off lead to the nonpreferred action unless the agent appeals. An appeal always triggers type verification." @default.
- W2993817539 created "2019-12-13" @default.
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- W2993817539 date "2019-01-01" @default.
- W2993817539 modified "2023-09-23" @default.
- W2993817539 title "Costless Information and Costly Verification: A Case for Transparency" @default.
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- W2993817539 doi "https://doi.org/10.2139/ssrn.3426817" @default.
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