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econ.TH2025
Tight Samurai Accountant
Deniz Kattwinkel, Justus Preusser
This note applies tightness (Kattwinkel and Preusser (2025)) to the setting of Border and Sobel (1987, "Samurai Accountant: A Theory of Auditing and Plunder"). Border and Sobel cha…
econ.TH2025
Who and How? Adverse Selection and flexible Moral Hazard
Henrique Castro-Pires, Deniz Kattwinkel, Jan Knoepfle
We characterize incentive-compatible mechanisms in environments with hidden types and flexible hidden actions. Our approach introduces extended recommendation schedules that also p…
econ.TH2025
The Division of Surplus and the Burden of Proof
Deniz Kattwinkel, Justus Preusser
A principal and an agent divide a surplus whose size is known only to the agent. The agent decides how much to reveal initially. Both parties can acquire costly evidence to verify…