6. two-sided opportunism Return to the setting of Example 17.3. Now assume the firm, rather than the
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6. two-sided opportunism Return to the setting of Example 17.3. Now assume the firm, rather than the manager, privately observes y ∈ {g, b} after the manager acts but before output is observed. Determine an optimal contract that will simultaneously motivate the manager to supply input H and the firm to self-report its observation. Also write a short paragraph describing the equilibrium specification in the various incentive compatibility constraints.
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