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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★ 1 cited
The Tension between Trust and Oversight in Long-term Relationships
Peter Achim, Jan Knoepfle
A principal continually decides whether to approve resource allocations to an agent, who exerts private effort to remain eligible. The principal must perform costly inspections to…