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Contracting for Information
(2003)
  • Vijay Krishna, Penn State University
  • John Morgan, University of California, Berkeley
Abstract

We study optimal contracts between a decison maker and an expert where the decison maker can commit to make transfer to the expert contingent on his advice but cannot commit to take an action contingent on advice. We show that optimal contracts never entail full revelation. Instead, the decision maker pays the expert to reveal for some states and doesn't compensate the expert at all in others.

Keywords
  • contracts,
  • decision making
Publication Date
October, 2003
Citation Information
Vijay Krishna and John Morgan. "Contracting for Information" (2003)
Available at: http://works.bepress.com/john_morgan/4/