The stylized contracting model accommodates the idea that a well-informed player might be induced to communicate what

Question:

The stylized contracting model accommodates the idea that a well-informed player might be induced to communicate what is privately known. This requires we pay attention to incentives; after all, it would be naive to expect the player to freely give away any private-information-based advantage. In tum, revelation incentives take the form of a commitment to "underutilize" the communicated information.

Explain this general principle of nurturing communication incentives by less than aggressive use of what is communicated.

AppendixLO1

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: